Naffman wrote: ↑Thu Sep 22, 2022 11:49 am
Seeing a lot of moaning that the BOE should take into account peoples mortgage repayments before they decide to raise the rate today. I’m sorry but this isn’t the BOE’s job, you and your lender should’ve made sure you had enough to pay for a worst case scenario, curbing inflation is a hell of a lot more important than saving a few who way overstretched their limits.
+1. I remember when I bought my first place (1990ish) the rates went from about 4% (high by today's standards) to FIFTEEEN percent. Repayments trippled, but mortgages then we're limitted to 3x income back then which allowed headroom. The issue now is that wages are so low and house prices so high that 3x wages isn't enough for a rabbit hutch, so people are forced to overstretch with less than honest "affordability" applications.
I've got huge sympathy for single people too, my lad is 30, he earns £11.50/hr 40 hrs a week (mechanic) that's only £25k a year (take home about 1600) and a tiny terrace near him is 200k (8x wages) His rent is 750! It's absolutely tragic esp with no 2nd income from a partner and a child to support.