Coronavirus bounce back loan

JohnD said:
When a young couple have to rent because they can't pay a mortage on a home, but they're paying somebody else's mortgage on one of their homes, there's something wrong.
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Yeah. I’ll tell you what’s wrong, they’ve not scrimped and scraped for years to get a deposit together. That’s what we did. Too busy buying new clothes, going on holidays, latest mobile phone, cars on lease etc etc. Not prepared to sacrifice anything and think they should just be able to walk into a brand new house with new furniture, carpets and curtains and the latest gadgets. We weren’t poorly paid and had to save like mad for years to be able to get a deposit to buy our first house. Even then, we had to buy a run down hovel that needed complete renovation and everything we had except the bed was second or third hand. Most of my mates did the same. We had to live upstairs for the first year as downstairs just wasn’t habitable. Many young couples won’t do that these days I’m afraid.
 
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Mottie said:
That’s what we did.
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I'm glad you said that.

So you're a man around retirement age, who first bought a hovel in the East End with a deposit of a thou or two from savings.

So that's what? 40 years ago? Purchase price around £10,000? And the biggest mortgage you could get was around 2.5 x husband plus 1 x wife's earnings, except if they thought she might get pregnant so would be disregarded? And at the time did you have what the Building Society called a "permanent, pensionable job?" Not a temp, or a gig worker, or a zero hours worker, or a casual labourer? And not recently laid off? And with no big gaps in your employment record? Been in steady employment from age 18 or so?

And you didn't have a student loan or tuition fees debt, because, if you'd been lucky enough to go to the Poly, it was free and you may even have had a Maintenance Grant, like Theresa May and David Cameron. And if your wife was a student nurse or recently qualified, she'd have been pulling in enough to get by on, and might have had a room in the Nurses' Home.

Are my figures near enough?
 
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Mottie said:
No. House was bought in 1984, cost £32,500.
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In 1984, average house price was
1984 Q4 £32,543
now there's a coincidence.

So not such a hovel as mine, or maybe it was nearer the centre of town. If you'd been really hard up, you might have had to live in Romford, or Walthamstow.

Do you know what £32,543 is worth today, adjusted for inflation since 1984?

And do you know what average house price is today?

And you say you were a teacher, so you'd had the advantage of higher education at the taxpayer's expense. Maybe a maintenance grant, too. Foreign holidays, maybe? And no debt. Young people today would envy you.

You and the wife must have been pulling in a pretty fair whack to get a £29k mortgage.

In 1984 average earnings for a young man in a non-manual job were about £176 a week. So just about enough for a £29k mortgage if you could get 3x

And...

Do you honestly think that a young man today on average earnings can get a mortgage big enough to cover 90% of the cost of an average house?

Because he can't.

You are living in a fools paradise.

Are you a Tory?
 
JohnD said:
And you say you were a teacher, so you'd had the advantage of higher education at the taxpayer's expense. Maybe a maintenance grant, too. Foreign holidays, maybe?
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Wrong. Left school with just CSE's and that was the end of my education apart from my apprenticeship. Just a motor mechanic supply teacher. No grants. First time abroad was in 1981 when I drove to Paris just before Christmas. No maintenance grants ever. Left U.K. in Jan 1982 to work in South Africa for a year and then our honeymoon in Ibiza in 1984. So no, not exactly we’ll travelled.
 
Mottie said:
Yeah. I’ll tell you what’s wrong, they’ve not scrimped and scraped for years to get a deposit together. That’s what we did. Too busy buying new clothes, going on holidays, latest mobile phone, cars on lease etc etc. Not prepared to sacrifice anything and think they should just be able to walk into a brand new house with new furniture, carpets and curtains and the latest gadgets. We weren’t poorly paid and had to save like mad for years to be able to get a deposit to buy our first house. Even then, we had to buy a run down hovel that needed complete renovation and everything we had except the bed was second or third hand. Most of my mates did the same. We had to live upstairs for the first year as downstairs just wasn’t habitable. Many young couples won’t do that these days I’m afraid.
Click to expand...

wrong.

Do you honestly think that a young man today on average earnings can get a mortgage big enough to cover 90% of the cost of an average house?

Because he can't.
 
Last edited:
Another point - I was 27 years old when I bought my first house and always had at least two jobs. Most 'young men' of 3O years old these days have still to complete level 7 of call of duty........
 
There is no question that its tough for kids but there are also opportunities.. Had I been 5 years older, I'd probably have another 600k equity in property, and some sort of defined benefits pension but then I'd have missed the start of the technology boom and not paid my mortgage off at 32. This government has already taken steps to slow the growth of investment properties with the 2nd property tax. My Most most recent purchase cost an extra £7k for that reason. If my cash wasn't rotting in the bank, I wouldn't need to find other investments.

Interest rates are super low and kids can literally make millions in their bedrooms
https://thetab.com/uk/2018/11/13/british-youtubers-net-worth-85773
 
Parasitic BTL is the biggest scourge affecting young buyers. Always nice to see a decline in BTL.(y)
 
I do love your early morning trolling Noseall. It always makes me smile. ;)
 
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