Soldato
Time for a new poll. Can you pay the mortgage at 10% interest?
I think a lot of people couldnt, probably including me.
Need a calculator to work it out!
Nationwide calls time on the Bank of Mum & Dad.
- Thread starter stockhausen
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Time for a new poll. Can you pay the mortgage at 10% interest?
I think a lot of people couldnt, probably including me.
Need a calculator to work it out!
Soldato
10% wasn't sustainable for me either in the 1990's. I had to sell a £100,000 house for £72,000 before i actually lost all the equity that was left in it.
After furlough ends and we have 4 to 6 million unemployed, house prices will plummet. A lot off people will find themselves in negative equity, rising interest rates and no salary. What's coming wont be a recession, it will be a depression only a lot lot worse than the last one in the 1930's.
Edit: With that many unemployed the Government will be forced to borrow at much higher interest rates than they can at the moment. Those lucky enough to still have a job will see taxes go through the roof.
All depends on job losses really.
I sometimes wonder if it would even be worth starting again. I'd go bankrupt (with a massive interest rate rise) because I bought my first house in Jan this year (lol).
To lose everything in mid 30s would be dire.
Would be a lot of people in same position too
This is the cost of lockdown, hopefully it won't be super bad. But yeah furlough ending is a scary one. Not sure what projected unemployment projections are
Interest rate jump (hopefully unlikely) and house price decline (likely) would be the end of the road for many.
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Soldato
That's why in my 1st post i mentioned the USA unemployment figure (30 million), that is 20% of the American workforce. The UK workforce is about 32 million. If we end up at 20% as well, that's 6 million.
Edit: It's not dire, i was in my mid 30's in the 1990's. I Now own my house mortgage free. That came at a cost though, my wife died 10 years ago. The stress she went through probably took 20 years off of her life, i don't know what it has taken out of mine yet. The cost of coming back though is a lot more than just money.
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Associate
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You dont have to live in London or the south east. You get the luxury of living there so you gotta pay. Move to burnley where I live. But that isnt nice enough for you whingers is it
Agreed. Without my partner I wouldn't have been able to buy and vice versa. Though even with two of us it was still really hard to save for a deposit whilst renting. It wasn't until we started to get our foot onto the ladder we realised how much more we were spending on rent vs what your mortgage repayment was going to be.
It's such a horrible position to be in knowing you can pay the mortgage repayments but not being able to do it because you're not fortunate enough to have a small £20-30K sat around you.
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I own a 13 year old Golf. Hardly anything fancy and still struggled to get on there. I shouldn't even say I'm on it until I have the keys. Don't want to jinx myself
Soldato
Look at mister 'I can afford vintage vehicles' over here!13 year old Golf? Rookie numbers. I own an 18 year old Polo!
Caporegime
Errrm. I guess. But I dont see house prices falling as much as they would need to for things to be "fair" again.
Soldato
SameI own an 18 year old Polo!
Exhaust is rattling a bit currently. Alongside needing rear shocks. Mot next month. We'll see what the cost comes to. Part of me keeps hoping it'll give me a reason to replace it
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I did own a 1995 white P reg Polo but now I own a 13 plate polo.plan on getting a Seat Leon next. but I own a cheap house. 
Same
Exhaust is rattling a bit currently. Alongside needing rear shocks. Mot next month. We'll see what the cost comes to. Part of me keeps hoping it'll give me a reason to replace it
Careful what you wish for! My old Fiesta ST was a work horse. Never gave me any problems at all and just seemed to chug along for the years I had it. I always said "I'd love a new car but this thing is too reliable"
A week after its MOT the bloody engine literally dropped out of place and broke a shaft! Fiona then went to some guy who made it into a little rally thing.
I always said I wouldn't get a new car (new to me is <4 years old, I'll never afford new new) until I'm a home owner. Now I'm soon to be a home owner I still can't see myself getting a new car
Associate
'A lot worse' than the great depression seems excessive. USA unemployment didn't reach 20% as you stated, it got to nearly 15% and is now down to nearly 10%. It got to 25% in the 1930's. Although I agree the true extent might not be apparent right now. Updated UK unemployment data gets released tomorrow so we shall we.
Interest rates won't rise during a recession either.
I thought those numbers sounded high.
Will be starting to get the effects of furlough ending now. As you have to make redundancy in advance
I can afford my house because I own the Dacia Sandero.
Dropped down to one car to afford house.
I'll get another car when I'm settled.
Throw in corona. And still one car!
Got an e bike though to cover the commute
May, is that you?I can afford my house because I own the Dacia Sandero.
Why do you think they're so low? To keep the housing market afloat and keep the grey vote. Absolutely no other reason.
Sauce? Average house prices (flats included) have been going up since the 80s. Above inflation too. Or are you just making stuff up for the fun of it?
Oh do shut-up you moron.
I don't own a car.