7.1.09

REVENGE OF THE NERDS. Bought a house lately?

Anyway, the old system went something like this. First of all, you had to show you were a ‘regular saver’. That usually meant picking a Building Society some years before you thought you would ever want to buy a house, and paying 50 quid or so into a savings account. Unless your Mum and Dad were going to help out, you’d need to do that anyway, because 100% mortgages were quite unheard of. If you were very lucky, you might get 90% -- so my £27,500 flat needed £2750 from my own little nest egg of savings.

Then there was the basic rule of thumb that you could have two and a half times your annual salary, which JUST about worked for me.

Yes, the article has languished in my "to do" stack since late last spring. It's worth looking at again, particularly as policymakers rediscover the eternal verities elsewhere.

No comments: