[Finance] Does earning 100k a year make you feel well off these days?

[Weststander]

Aren't most lenders just doing a 4.6 loan to salary ratio?

Thanks. This sauce have calculated the 6.8 of a hypothetical of the average mortgage drawndown in the city, as a ratio to a couple each on the average salary in the city. To illustrate the ill affordabilty.

Mortgage to Salary Ratios - 80 UK Towns & Cities

Explore mortgage affordability across 80 UK cities with our in-depth analysis of average salary-to-mortgage ratios. Find out about your city here.

mojomortgages.com

 

[Herr Tubthumper]

I wonder how many other football chat rooms are debating whether 100k a year is rich or poor

 

[dazzer6666]

They are allowed a % above 4.50 income multiple but only like 10% of their entire mortgage book

….and that’s gone up significantly over the years. When I started in credit we had a policy of 2.5 joint/3x sole income

 

[Wozza]

I wonder how many other football chat rooms are debating whether 100k a year is rich or poor

20 years ago on the Fulham board.

 

[Paulie Gualtieri]

….and that’s gone up significantly over the years. When I started in credit we had a policy of 2.5 joint/3x sole income

I started in the world of self cert income, absolutely shocking underwriting! “Low LTV” was considered robust rationale back then

 

[sussex_guy2k2]

Thanks. This sauce have calculated the 6.8 of a hypothetical of the average mortgage drawndown in the city, as a ratio to a couple each on the average salary in the city. To illustrate the ill affordabilty.

Mortgage to Salary Ratios - 80 UK Towns & Cities

Explore mortgage affordability across 80 UK cities with our in-depth analysis of average salary-to-mortgage ratios. Find out about your city here.

mojomortgages.com

Some of the numbers on there are crazy.

 

[raymondo]

Thanks. This sauce have calculated the 6.8 of a hypothetical of the average mortgage drawndown in the city, as a ratio to a couple each on the average salary in the city. To illustrate the ill affordabilty.

Mortgage to Salary Ratios - 80 UK Towns & Cities

Explore mortgage affordability across 80 UK cities with our in-depth analysis of average salary-to-mortgage ratios. Find out about your city here.

mojomortgages.com

I live a few miles from Bath.
The city itself is clearly desirable (but can get packed with tourists,and it's not all great).
I believe a number of homes owned there are second/weekend homes from some monied Londoners. Excellent train connections from London now.
Also, being a heavy student City, many previous family homes (lower priced areas) have been converted by developers into multi occupancy student houses - high income now giving rise to far higher property prices, even in fringe areas.

 

[Machiavelli]

….and that’s gone up significantly over the years. When I started in credit we had a policy of 2.5 joint/3x sole income

Yup. And that's because property prices have increased significantly above inflation whereas the median real-term wage hasn't. Bank leveraging has increased enormously in that interim period (although it was at its highest c2007).

 

[dazzer6666]

Yup. And that's because property prices have increased significantly above inflation whereas the median real-term wage hasn't. Bank leveraging has increased enormously in that interim period (although it was at its highest c2007).

Indeed - I spent a year basically commuting to NYC and back helping sort out Lehman Brothers