Discussion
The junior content editors have been busy with their creative writing again or are there many couples who aren’t being subsidised (and we all know there are plenty that are) with a £3k joint net income riding around in what must be a £100k motor, servicing a £425k mortgage while ignoring at least £44k of other debt.
If true they’d be best served spending the next couple of years getting rid of some debt before the fix ends and they get smashed to smithereens.
“She’s recently moved into a £500,000 four-bedroom house with her partner. They sold their respective homes and used £75,000 as a deposit, leaving them with a nest egg of £80,000 to spend as they choose.
Currently, they’ve stashed £20,000 away in an Isa, but the couple are struggling to work out what to do with the rest of their money.
The couple’s monthly post-tax income works out at approximately £3,000, and because Ms Berhardien ported over her 1.5pc mortgage to the new house, that rate won’t run out until October 2025.
But her mortgage payments jumped from £500 a month to £1,800 and she is worried about how much more they will rise. She said: “That’s something in the back of our minds thinking critically, how do we prepare for that?”
The couple also pay £600 a month towards their car, which they have leased as a PCP. The contract will run out in three years, with a balloon payment of £40,000 at the end.
She has £44,000 of student debt, having graduated in 2016, and doesn’t know if it would be worth paying this off.”
If true they’d be best served spending the next couple of years getting rid of some debt before the fix ends and they get smashed to smithereens.
“She’s recently moved into a £500,000 four-bedroom house with her partner. They sold their respective homes and used £75,000 as a deposit, leaving them with a nest egg of £80,000 to spend as they choose.
Currently, they’ve stashed £20,000 away in an Isa, but the couple are struggling to work out what to do with the rest of their money.
The couple’s monthly post-tax income works out at approximately £3,000, and because Ms Berhardien ported over her 1.5pc mortgage to the new house, that rate won’t run out until October 2025.
But her mortgage payments jumped from £500 a month to £1,800 and she is worried about how much more they will rise. She said: “That’s something in the back of our minds thinking critically, how do we prepare for that?”
The couple also pay £600 a month towards their car, which they have leased as a PCP. The contract will run out in three years, with a balloon payment of £40,000 at the end.
She has £44,000 of student debt, having graduated in 2016, and doesn’t know if it would be worth paying this off.”
GiantEnemyCrab said:
Link missing?
Apologies. Enjoy! https://www.telegraph.co.uk/money/consumer-affairs...Blocked by the paywall? Disable Java x
'nest egg of £80,000 to spend as they choose... Currently, they’ve stashed £20,000 away in an Isa, but the couple are struggling to work out what to do with the rest of their money.'
I'll take it off their hands - making one less problem for them to wrestle with. Clearly these people's incomes exceed their IQ.
I'll take it off their hands - making one less problem for them to wrestle with. Clearly these people's incomes exceed their IQ.
There must be a lot in the article we don't know about and doesn't make sense so i'm going to say
she isn't earning enough to repay her student loan yet her and her partners both had houses that had £155k in equity? Maybe a cash windfall from parents bought the original house but with only 3k after tax per month how have they got a £425k mortgage?
she isn't earning enough to repay her student loan yet her and her partners both had houses that had £155k in equity? Maybe a cash windfall from parents bought the original house but with only 3k after tax per month how have they got a £425k mortgage?
Am I missing something here? Their take home is roughly 3K a month, their mortgage is 1800, car is 600 - so that's 2400. Leaving roughly 600 a month.
Council tax on a 4 bed 500K house? Gas, Electric? I can't see that leaving a great deal left over - if anything...
How did they pass affordability checks, and what are they paying for food with, if not by dipping into that nest egg?
Council tax on a 4 bed 500K house? Gas, Electric? I can't see that leaving a great deal left over - if anything...
How did they pass affordability checks, and what are they paying for food with, if not by dipping into that nest egg?
They don't sound so badly off, 44k in student loans is not strictly a debt (Martin Lewis et al) and the car might be a bit extravagant but guessing it's a nice electric one that saves on tax, ULEZ and petrol.
House equity none of us can control, might go up, might go down. Interest rates have likely peaked. They have a reasonable liquid cushion and are working.
These sort of threads tend to excite professionally undistinguished late sixty somethings who brought their house for buttons in the seventies and have had three or four inheritances and currently drive a Honda Jazz.
And who live to see others fail.
House equity none of us can control, might go up, might go down. Interest rates have likely peaked. They have a reasonable liquid cushion and are working.
These sort of threads tend to excite professionally undistinguished late sixty somethings who brought their house for buttons in the seventies and have had three or four inheritances and currently drive a Honda Jazz.
And who live to see others fail.
Motorman74 said:
Am I missing something here? Their take home is roughly 3K a month, their mortgage is 1800, car is 600 - so that's 2400. Leaving roughly 600 a month.
Council tax on a 4 bed 500K house? Gas, Electric? I can't see that leaving a great deal left over - if anything...
How did they pass affordability checks, and what are they paying for food with, if not by dipping into that nest egg?
I think something is indeed missing. Council tax on a 4 bed 500K house? Gas, Electric? I can't see that leaving a great deal left over - if anything...
How did they pass affordability checks, and what are they paying for food with, if not by dipping into that nest egg?
£3k is about 50 grand a year l basically two people working in Lidl stacking shelves. Nobody is getting a £600 lease car and that mortgage on those numbers. Something else at play here.
Pathetic attempt to troll though.
okgo said:
I think something is indeed missing.
£3k is about 50 grand a year l basically two people working in Lidl stacking shelves. Nobody is getting a £600 lease car and that mortgage on those numbers. Something else at play here.
Pathetic attempt to troll though.
Pension deductions/salary sacrifices etc etc possibly.......£3k is about 50 grand a year l basically two people working in Lidl stacking shelves. Nobody is getting a £600 lease car and that mortgage on those numbers. Something else at play here.
Pathetic attempt to troll though.
They need gross income of at least £90k to secure a £425k mortgage.........
Franco5 said:
.........what must be a £100k motor,
......The couple also pay £600 a month towards their car, which they have leased as a PCP. The contract will run out in three years, with a balloon payment of £40,000 at the end.
Sorry if I misunderstood...is the £100k motor different to the one they have leased at £600pcm?......The couple also pay £600 a month towards their car, which they have leased as a PCP. The contract will run out in three years, with a balloon payment of £40,000 at the end.
As this is PH...what are they?
Hammersia said:
They don't sound so badly off, 44k in student loans is not strictly a debt (Martin Lewis et al) and the car might be a bit extravagant but guessing it's a nice electric one that saves on tax, ULEZ and petrol.
House equity none of us can control, might go up, might go down. Interest rates have likely peaked. They have a reasonable liquid cushion and are working.
These sort of threads tend to excite professionally undistinguished late sixty somethings who brought their house for buttons in the seventies and have had three or four inheritances and currently drive a Honda Jazz.
And who live to see others fail.
The student debt may not be considered debt in the traditional sense, more of an additional tax bracket. It still needs to be paid until it's settled. House equity none of us can control, might go up, might go down. Interest rates have likely peaked. They have a reasonable liquid cushion and are working.
These sort of threads tend to excite professionally undistinguished late sixty somethings who brought their house for buttons in the seventies and have had three or four inheritances and currently drive a Honda Jazz.
And who live to see others fail.
I know, I've been paying mine off for 16 years now and it has always been a sizeable chunk out off my take home.
Thankfully I'm clearing it this month and it will be the equivalent of the 2nd largest pay rise I've had in my life! (Just in time for my boiler to break down, how does the universe know these things?)
There must be a lot in the article we don't know about and doesn't make sense so i'm going to say
she isn't earning enough to repay her student loan yet her and her partners both had houses that had £155k in equity? Maybe a cash windfall from parents bought the original house but with only 3k after tax per month how have they got a £425k mortgage?
she isn't earning enough to repay her student loan yet her and her partners both had houses that had £155k in equity? Maybe a cash windfall from parents bought the original house but with only 3k after tax per month how have they got a £425k mortgage?
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