EU referendum, brexit and the aftermath

I think you must have the term and/or interest rate set at something a bit unusual. At 25 years at 2% it comes out at £2,386/month.

That'll be it - the default on the calculator I used is 7%

That's assuming no deposit and using their interest rate which is laughable at 7%.

Using this, i get £1,861 on a £450k mortgage (£500k property w/ £50k deposit). Still a lot of money but more in the realm of possibility...

Even if you want ot fix your term for a decade, you can get 2.85% or £2,097 a month.

How do you get the deposit?

Ah I think it's just a logic point - I don't think that "it's not true noone can buy a house anywhere" means anyone can buy anywhere - which is clearly false.

Agree with all the reasons many people can't.

Point I was trying to make is that many people still can - not least because they had capital (e.g. from already being exposed to the property market).

You're earning 80k in this hypothetical situation.

Yet nurses in Belfast need foodbanks and we just all chipped in at work to get supplies for patients in acute care. The NHS here no longer has a budget for shampoo etc...

the U.K. are wealthy because they are over the global average.

Sounds like a variety of whataboutism really.

You're earning 80k in this hypothetical situation.

His point is valid tho. I earn around the £50k a year mark and I struggled for a £10k deposit. The idea of a £50k one even with double my current money seems really unlikely.

His point is valid tho. I earn around the £50k a year mark and I struggled for a £10k deposit. The idea of a £50k one even with double my current money seems really unlikely.

Your cost of living does not automatically increase if you suddenly earn more.

If you earn an extra £30k a year you'll take home an extra ~£20k a year. If you continue to live as you did on £50k/year then that £10k deposit becomes a £50k deposit with two years of not spending the extra you're earning.

This is a disingenuous argument, if you maintain the same lifestyle that you had earning 50k at 100k you will be able to save far more cash.

Also, the chances of someone earning 80k not having either savings or already being on the property ladder, is more unlikely than them not being able to save 50k no?

That's a reminder that I haven't redeemed my £10 voucher for doing the yearly ONS survey that's used to gather this data.

(Takes about 90 minutes in total so for £6.66/hr I'm not in it for the money.)

Lots of those outcomes you list are stark reminders of how much of a bubble many people live in (myself included).

If you continue to live as you did on £50k/year

Haha nobody does this. The lizard brain gets us all...

Between £60k and £70k, and have one child, it's effectively 50% thanks to the limits on Child Benefit. The more children you have the higher the effective tax rate.

And over £100k the effective rate also changes to the tapering of the personal allowance.

That's a reminder that I haven't redeemed my £10 voucher for doing the yearly ONS survey that's used to gather this data.

I didn't even get a fucking voucher. Bastards.

Lots of those outcomes you list are stark reminders of how much of a bubble many people live in (myself included).

Thanks for being the first person on about 4 pages or so (it feels) to comment on how material deprivation is measured.
The things that kids want and can't because of poverty is heartbreaking.

Exactly.

If you get a £3k (before tax) payrise you'll work out how to spend £3k of it, and end up worse off as you haven't accounted for the extra tax you'll be paying.

Or, put another way, if you get a £3k (after tax) payrise you'll work out how to spend £4k of it.

I didn't even get a fucking voucher

Your personal 'taper' seems very specific.

50% of London families have no savings.

What % of Londoners earn 80k+?

Dunno. They might be off shore.

I think we're both fencing the same point here: how do you get a deposit?
How can you save if you can't save?

Quite a lot about poverty in here:

https://www.lfgss.com/conversations/183313/

Around 10%. Will find the stats if you want

I think there's two different conversations here. Many of the recent posts have concerned the specific scenario of someone earning £80k a year trying to buy a £550k home:-

£80k is a significant amount of money but it's not enough to pay the mortgage on an average house in London.

from: https://www.lfgss.com/comments/14995800/

Which, due to the miscalculations, didn't seem possible but is. If you're earning £80k then you're more than likely able to save for a £50k deposit in a few years to then borrow ~£500k for a £2200/mo mortgage payment to buy the average London house (~£550k).

But that leads into your/the bigger point. If only the top 5% earners of the country are in a position to be able to do so for the "average" London house then, as we all know, it's all fucked.

If I put the cart before the horse and worked out I could scrape to a £2200/mo mortgage payment whilst covering all essentials (food, bills, etc) then that's all fine and dandy, but if I'm left with a £100/mo disposable income then I'm fucked for trying to save for the deposit to buy the place. Trying to save £50k at £100/mo isn't going to get very far.