To ask where all the money comes from?

[Whatsnewwithyou]

Mostly on these house buying/selling programmes with youngish couples in ordinary jobs and budgets of 750k. Is it almost all inheritance?

I have a friend who always seems to be going off skiing and another who has been unemployed/job searching for ages but still shops at John Lewis and goes on holiday. Both are single and have very nice houses. It turns out both have trust funds from grandparents but I knew then both for years before they ever mentioned it. I used to wonder why I couldn't afford all these holidays etc when they could and thought I must be really bad with money.

So are trust funds and inheritances quite common? They must be, right?

% deposit?
Who with?

I’m not making this up. Following the crisis the FSA set very stringent regulations

Just put £60k joint into nationwide, it was just a quick mortgage calculator, it sounded an awful lot, it didn’t mention deposit just if you had dependents or credit cards I did it as If the 2 people had no commitments, ie. living with parents.

Well, £30k each as it asked for separate amounts, maybe I did it wrong, it’s been a long time since I needed a mortgage

@Caribbeanyesplease

They still do plenty of mortgages at 4x salary

There’s not loads around at all.
And you can borrow more the more deposit you have

These days, if someone does have a large mortgage it will be because

A) They have passed the bank’s affordability requirements ie their earnings comfortably cover their current and forecast outgoings
B) they have secured the property with a proportionately high deposit

It’s not like ten years ago when people could get 5/6x salary. They just don’t exist anymore.

My sister got offered over 4 x joint income last year, deposit was just shy of 20%. Would have been almost exactly 4 x had they not considered child benefit though. I forget who it was with.

Hamiltoes do you not buy clothes for your holidays? When you're there do you eat as frugally?

Stealth Yes I do have holiday clothes mostly primark and h&m, and again basics so they're never in fashion but never go out of fashion.

And no I do tend to get whatever I want on holiday, as in we'd be all inc or would eat out every night.. although admittedly food wise I don't really have expensive tastes!

I suppose I'm saying people choose to spend money on different things and you can never really tell someones outgoings, a medium salary can go very far if you don't drink, go out at the weekends, spend a lot on groceries and if you have low bills etc.

PaulDacreRimsGeese

Please let me know who with!! Single mum here too

Caribbean I got 4x with RBS and a 5% deposit for my first mortgage at 19, this was in 2011 so after the banks started getting tight. They took into account child benefit, tax credits and child maintenance. The mortgage advisor said they were one of the banks who liked that sort of income as it was generally more secure than a salary.

You could scour the mortgage deals now but no way would any bank allow a 19 year old to get 4x income with 5% deposit.

A friends DS just bought a flat, he is 21 and I think he was offered about 3.5 times his income, no debts and no financial commitments, 10% deposit

@Caribbeanyesplease

It is possible to get 4x with 5% deposit still. It will be a higher rate but then up to the person if they want to take it. Me and my partner have just got a 4x with 5% deposit. Admittedly we are in our 20s but don't think age would have made a great deal of difference. When you search they never ask for your age.

We will be one of those couples. Early 30s, I was on maternity leave when we moved into our 600k house.
Parents very well off and we are extremely lucky and thankful they have put us in this position.
We pay them a “rent” but it is much lower than the market rate.
Friends are well aware of the help we have had, I assume people who don’t know as well can easily guess.

My parents have been fortunate when buying property and it’s value more than doubling when it comes to sell.
Also working extremely hard and running a successful company.

They are my idols and our DCs will also we very well provided for, they will be fully aware how lucky we are when they are old enough to appreciate it.

Friends are well aware of the help we have had, I assume people who don’t know as well can easily guess.

Tbh, when speculating where wealth comes from, it would never occur to me that the parents of anyone I knew could bankroll that kind of lifestyle. The only person I know who has paid of their mortgage before 50 has done do because his wife died and was well insured.

I've been scrolling back trying to see where the argument occurred about money from an inheritance being awful because the person had to die to pass it on. I find this confusing too and Bike above talks about someone who has come into money as their spouse died young. Surely its different if someone has had their life and dies with their family around them and is able to pass on money, then I would suggest that the deceased was a fortunate person and their beneficiaries even more so. Thats not to say they wouldn't grieve for the relative who died, but I just cant see how that can be made any harder by having a substantial sum coming your way.

My mum died in poverty aged 54 when I was 13 and left nothing, now I am worried I won't be able to help my kids either. The few people I know who have received significant cash or property through an inheritance seem to think that they are in some way "better" than others, but of course that's not going to be the same for everyone as some posters have demonstrated on here.

Elephant
I am sorry for your loss. My DM died when I was 16 so I understand how hard 13 must have been.
I think early death is always going to be a painful subject and grief is hard for people to cope with no matter how well off you are. I can see that the loss of a parent combined with financial pressures is hard. However, I don’t think it is fair to assume that people who get an inheritance should in some way find it easier to cope. Everyone reacts differently. Everyone’s grief is painful for them.