Halmyre wrote:
On Jun 8, 6:28 am, Andy Cap wrote:
On Fri, 08 Jun 2012 04:26:40 +0100, Rob wrote:
It's a complicated picture. For example, average first time buyer
price-income ratios haven't changed that much over the last 30 years
(c.7 London, 4 everywhere else). And property prices, taking into
account wild swings, have 'only' risen by about inflation since the mid-70s.

But increasingly 'averages' are a cold comfort to many.

Rob

It is different though. Just prior to me buying in 1967 loans were frequently
limited to 2.5x a single salary. Under no circumstences would the Building
Society take my wife's earnings in to account. In the end I managed to get 3x
but it was touch and go, I vividly remember visiting the pay office and trying
to get a reluctant pay clerk to included my overtime, because without it I
couldn't borrow quite enough. In the end I won and got the 2700 I required.
We generally accepted such limitations, but once lending simply became a another
market place, prices increased.


In 1987 I still had to hunt around before I could find someone willing
to give me a x2.5 mortgage at 100%. And if I hadn't been employed by
one of the largest companies in the area I don't think they even would
have let me through the door.

I needed a 95% mortgage in 1982. The BS was good enough to recognise that a
student taking the course that I was on had a high probability of getting a
good job.

House price inflation at the time meant that after three years the mortgage
was less than 1/3 rd of the sale value. Happy days.