UK house prices post biggest fall since October 2008 - Halifax data today Weds 7th Dec

[jimmyjammy001]

Just a quick note for anyone looking to buy, in particular first time buyers who run the extreme risk of running into negative equity if buying with a low deposit

UK house prices post biggest fall since October 2008

Also its important to note that "Property prices are up more than £12,000 compared to this time last year, and well above pre-pandemic levels (+£46,403 vs March 2020). "

I suspect there will be bigger falls yet still to come as well

@Mark19735
What does that have to do with anything? I'm now not allowed to make an observation that someone buying in May last year is going to face financial repercussions which can't be gotten around with a 12% pay rise because you seem to have deemed yourself forum police and want to shut everyone down that posts anything negative whether accurate or not?

This isn't Russia, crack on if you don't like it.

@Mark19735

I asked you to show me where a 12% payrise means a 12% mortgage decrease, and you came up with an "ideal" example of somebody having 14% relatively more than their mortgage payment every month. Clearly you can't understand that somebody having 14% relatively more than their mortgage payment every month is not a 12% mortgage decrease. Feel free to show how the payrise impacts the mortgage payment over 25 years taking into account rising inflation and interest rates.

I can buy a beach hut in Afghanistan for 100k and continue living comfortably here. This has nothing to do with the fact that it's a poor decision with negative financial repercussions.

You insult everyone here and tell them to stop posting but can't come up with rational arguments to back your position. As I said, this isn't Russia, so crack on.

Salary £50k, mortgage balance £150k.
Mortgage size relative to Salary: 3
Pay rise +12%
Salary £56k, mortgage balance £150k.
Mortgage size relative to Salary: 2.678

Change in Mortgage size relative to Salary -12%
(2.68/3)^-1

Simples.

The more complex scenario I posted previously was to counter your incorrect assertion that inflation of food/transport/energy etc. would result in an adverse movement of mortgage affordability. That example was used to show that in fact, in a perfectly realistic scenario, differential rates of inflation could make mortgage payments even more affordable relative to earnings. And in the post prior to that. I caveated this by saying the precise ratios depend on the shares of total expenditure and the differential inflation rates being assumed.

I don't insult everyone here. I don't particularly insult anyone here. I do call out factual or mathematical errors, misogyny. aggressive posting, and bullshit. If you find yourself insulted by that, too bad.

@Mark19735
I requested you show how a 12% increase in pay is equivalent to a 12% decrease in mortgage.

I did not ask you to show how a 12% increase in pay is equivalent to a 12% decrease in mortgage multiple.

The poster themselves admitted the house bought in may 2022 would not affordable now.

Hope this is clear, and feel free to illustrate this 12% decrease in mortgage.

Sigh ...

It's late. I'm going to bed. If you can't comprehend, that's OK. It's not that important.

You might find DHB in the beach hut next door. He seems to have gone AWOL from
Mumsnet and apparently doesn’t buy or rent in the U.K. so 🤷🏼‍♀️

Erm in your example you posted you just pushed yourself in the 40% tax bracket voiding your argument.

@Twiglets1 -I'm not awfully concerned about your daughter, no. You mentioned her purchase and it has been dissected by several other posters. She's just one example of the hundreds of thousands of people who rushed to buy just before interest rates rose without necessarily putting much though into what they might do in 2 or 3 years. Your daughter's situation may work out really well for the reasons you have given but that it not necessarily the case for lots of others.
Re buying, we first bought many years ago and don't have a large mortgage anymore. I agree that both buying and not buying can be a risk. In the UK, there does seem to be a predisposition to under estimate the risk of taking on lots of debt and buying, probably because the rental market is so dire and money has been cheap for so long.

In the UK, there does seem to be a predisposition to under estimate the risk of taking on lots of debt and buying, probably because the rental market is so dire and money has been cheap for so long.

I think this is true. There are a lot of people who aren't old enough to really remember when rates were high, debt could be risky, and property wasn't guaranteed to go up in price rapidly. Cheap credit has done no one any favours though - just artificially inflated asset prices.

Not voiding … adding complexity perhaps. Anyway, what I didn’t say was they this fictional personal also uses salary sacrifice to contribute money not their pension, so the higher rate threshold isn’t breached.

Argument stands.

Next objection?

I think both yourself and @Mark19735 need to stop insulting posters and trollhunting everytime people disagree with you.

Haha I only insult DHB for reasons already given - he loves to LOL
at house owners facing repossession/financial problems so if he can dish it out he can take it.
Or can he? I’ve noticed he is absent from Mumsnet lately 😢

I didn't LOL though. I simply pointed out you posted incorrect information. You appear to be very defensive and take everything personally.

@Twiglets1
The only person who has LOLed on this thread is you at me 'strugglin' actually. I guess you must be projecting your own approach to others.

@Twiglets1 If your daughter is able to, I'd suggested overpaying the mortgage as it will help her when she comes to refix in 2025 as she has got over two years on a low interest rate. If she started overpaying monthly, she'd chip away at the capital. Just make sure not to go over the allowed overpayments before the early repayment charge kicks in (usually 10%, she would need to check), and to make sure the bank doesn't reduce the monthly payments rather than the term of the mortgage. I'd give the same advice to anyone who has bought recently, although it isn't easy at the moment due to cost of living and the recent high house prices. Moneysavingexpert has great resources for tracking expenses - if you can try and reduce expenses, you can throw the extra at the mortgage overpayments. I feel for anyone who has bought recently, and for anyone who is renting as it is so expensive now.

Thank you @rahrahsa I think that’s very good advice not just for her but for any homeowner who can afford to overpay while benefitting from
a low interest rate. She’s allowed to make a 10% overpayment each year.

Hi DeadHouseBounce - why the change of username?

Tell you what's also funny - loads of my posts on this thread appear to have been reported to Mumsnet HQ and deleted ... although it must have been a long time after this thread was last 'hot' back in early January because I didn't notice it until just now, when the zombie thread was reopened.

It's almost as if malevolent forces are trying to sanitise their timelines and remove anything from these threads that makes them look foolish ...

👀

Or that MNHQ decided you broke their talk guidelines. 🤷‍♀️

On balance, it's more likely that you are not as civil as you seem to think and broke MN rules by making personal insults.

Of course, you prefer to come with an alternative explanation as usual.