Mortgages - Help!

[johnnycool]

Remember looking for a house back in the day, early mid 90's and a decent house in a good area in Belfast was 35k, but I can remember thinking at the time I'm really stretching to afford this!! Would love to give my old self a good fecking slap!!

can mind as a student walking home after a night out a few times and there'd be ones camping outside an Estate Agents in Stranmillis ready to put their deposit down as soon as it opened that morning. That was mid 90's.

Yip, remember the same outside one on the Ormeau Road for a new development on the Ravenhill Road, with them selling for the extortionate price of £80K for a semi or town house, probably more late 90's in fairness.

[seafoid]

I think everyone knew they had to rise but its the speed which will and has caused problems. Youll have people coming out of deals in the 1s, low 2s now being faced with a deal say in the 5s as things stand. Carnage

Yeah exactly. You get idiots saying it was worse than this in the 80s. The affordability of housing was completely different and your LTV etc etc and this has been a sharp sharp rise.

They did this in a day and quite frankly probably fully intentionally because despite how they look they are not idiots.

This really annoys me. Back then you could come out of school with 2 O-Levels and buy a decent house for the equivalent of a year or 2 salary. Now it's 5-7 years salary for 3rd level educated people on good money. No extensive investigation of your finances before approval either. Here's the money away you go.

Exactly, these people can't seem to grasp that you could have bought a house for 20-30k back then.

Remember looking for a house back in the day, early mid 90's and a decent house in a good area in Belfast was 35k, but I can remember thinking at the time I'm really stretching to afford this!! Would love to give my old self a good fecking slap!!

And wages weren't THAT much lower back then. Lower yes, but not by a similar magnitude to what house prices were.

Wages haven't increased in line with house prices. Low interest rates hid that to some extent and implied that high prices were affordable. Now that arrangement has collapsed.

[Maroon Manc]

I don't believe the Tories intended or expected this to happen. Putting people out of homes does not usually win you elections.

They wouldn't have but did know full well their would be a huge issue in the housing market if rates had to rise, their policies on stamp duty have fuelled huge price increases in recent years. They've seen the ratio's on

The £ has struggled against the $ the last 6 years, if rates had risen 0.25% or 0.5% in the last 6 years we wouldn't be in this situation. Only way out of this looks to be if there's trouble ahead in the US and their rate rises come to a halt, tough times ahead in 2023 though.

[Fear Bun Na Sceilpe]

Im currently on 1.23%. Ahhhhhhhh. Changing in August

Start saving now.

I read that as "Start starving" at first glance lol

[Fear Bun Na Sceilpe]

Thd 80s were far worse all round-depressing economically but funtimes also

[Franko]

Rough ratios of average house price to median salary;

1980's
3

Now
8

People are way over-leveraged and won't cope with a massive hike in rates

Some people looking at up to £1000/month increases upon renewal

Which just isn't sustainable

[seafoid]

Rough ratios of average house price to median salary;

1980's
3

Now
8

People are way over-leveraged and won't cope with a massive hike in rates

Some people looking at up to £1000/month increases upon renewal

Which just isn't sustainable

Agree totally. High prices only work with low rates. Price falls on the way

[Fear Bun Na Sceilpe]

Aye but in 80s still far worse off. No jobs. No money. Emigration

[seafoid]

Aye but in 80s still far worse off. No jobs. No money. Emigration

+ the Troubles incl the INLA

[Franko]

Aye but in 80s still far worse off. No jobs. No money. Emigration

I'd hold off talking until you see what's coming

This could make 2008 look like the boom times

[Fear Bun Na Sceilpe]

Aye but in 80s still far worse off. No jobs. No money. Emigration

I'd hold off talking until you see what's coming

This could make 2008 look like the boom times

We have high employment. No indication that is going to change soon. Thats the key difference, back in the day we were all skint. Boys from the blackstuff all over the place "gis a job"

[seafoid]

I remember staying in a house in Rathgar in Dublin in 1995 that was sold that year for 130k. Seemed like a fortune.
Last year it was sold for 600k.

5% of 130 is 6.5
5% of 600 is 30

[Franko]

Aye but in 80s still far worse off. No jobs. No money. Emigration

I'd hold off talking until you see what's coming

This could make 2008 look like the boom times

We have high employment. No indication that is going to change soon. Thats the key difference, back in the day we were all skint. Boys from the blackstuff all over the place "gis a job"

We had high employment in early summer 2007 also.

By January 2009 plane loads of young Irish people were arriving in Melbourne with one-way tickets

[Fear Bun Na Sceilpe]

Aye but in 80s still far worse off. No jobs. No money. Emigration

I'd hold off talking until you see what's coming

This could make 2008 look like the boom times

We have high employment. No indication that is going to change soon. Thats the key difference, back in the day we were all skint. Boys from the blackstuff all over the place "gis a job"

We had high employment in early summer 2007 also.

By January 2009 plane loads of young Irish people were arriving in Melbourne with one-way tickets

Mostly for the sesh

[yellowcard]

Unemployment will naturally begin to rise if interest rates remain high as the cost of borrowing goes up. Retail businesses are already feeling the pinch and other sectors are not immune to energy price rises. So businesses are facing the double whammy of higher cost of doing business and reduced sales as customers have less disposable income to spend. There is a time lag with all of these things and it will take a while before the full effects are felt.