WASPI -Women Against State Pension Inequality

[truman]

I love it when rude people are wrong.

 

In 1975 average house prices were about 3.5 x the average wage. Now they are closer to 7.5 x the average wage.

 

Seemingly you have no clue as to how things were in the 70's.

 

What were average mortgage repayments as a percentage of salary in the 70's? Genuine question..

[Ethical]

Yes but I don't see how giving the ladies more chance to plan for retirement can detrimentally impact their plans beyond having to wait to relax and enjoy life instead of going to work.

 

I understand said ladies are annoyed, I would be too. They aren't however victims of inequality. The sad thing is that women by and large are victims of inequality throughout society. This is not an example

 

I can only agree that women (not only women, it's other groups in society too, but it's women we are talking about in this context) suffer from inequality in many ways.

 

It's OK having more time to plan for retirement BUT only if you have a job. If you can keep on earning, then it's OK from a financial perspective if you are fit enough. However, if you don't have a job then you have a huge problem.

 

I encourage everyone to think about this because there could be a precedent set by the lack of notice ..... who is to say it won't happen to another group come the next pension review in 2017? It can happen with benefits (tax credits?) but pensions aren't benefits, they are contributory schemes and the goalposts were moved in stoppage time for many.

[WiseOwl182]

What were average mortgage repayments as a percentage of salary in the 70's? Genuine question..

 

Let's take 1979 as an example, since boomers born in the 50s were unlikely to be buying in the early 70s.

 

Average UK house price in 1979 = £13,650.

Average UK full time salary in 1979 = £6,281

UK BoE Base Rate in 1979 = 14%

 

Let's assume the average house was bought with a 10% deposit and the buyer found a mortgage at Base Rate + 2%, over 25 years. That is £166 a month mortgage, from £523 a month gross salary. 32% of salary.

 

 

Compare with 2015.

 

Average UK house price in 2015 = £205,000.

Average UK full time salary in 2015 = £24,000

UK BoE Base Rate in 2015 = 0.5%

 

Let's assume the average house was bought with a 10% deposit and the buyer found a mortgage at Base Rate + 2%, over 25 years. That is £828 a month mortgage, from £2,000 a month gross salary. 41% of salary.

[francypants]

Let's take 1979 as an example, since boomers born in the 50s were unlikely to be buying in the early 70s.

 

Average UK house price in 1979 = £13,650.

Average UK full time salary in 1979 = £6,281

UK BoE Base Rate in 1979 = 14%

 

Let's assume the average house was bought with a 10% deposit and the buyer found a mortgage at Base Rate + 2%, over 25 years. That is £166 a month mortgage, from £523 a month gross salary. 32% of salary.

 

 

Compare with 2015.

 

Average UK house price in 2015 = £205,000.

Average UK full time salary in 2015 = £24,000

UK BoE Base Rate in 2015 = 0.5%

 

Let's assume the average house was bought with a 10% deposit and the buyer found a mortgage at Base Rate + 2%, over 25 years. That is £828 a month mortgage, from £2,000 a month gross salary. 41% of salary.

 

 

Most people who I know born in the early to mid 50s bought their first houses in the early 70s. I was born 1955 and bought my first house in 1975. Many cousins and friends were the same.

[WiseOwl182]

Most people who I know born in the early to mid 50s bought their first houses in the early 70s. I was born 1955 and bought my first house in 1975. Many cousins and friends were the same.

 

 

Fine. Let's take 1975 as another example.

 

Average UK house price in 1975 = £10,388

Average UK full time salary in 1975 = £3,744

UK BoE Base Rate in 1975 = 10%

 

Let's assume the average house was bought with a 10% deposit and the buyer found a mortgage at Base Rate + 2%, over 25 years. That is £98 a month mortgage, from £312 a month gross salary. 31% of salary.

 

 

Compare with 2015.

 

Average UK house price in 2015 = £205,000.

Average UK full time salary in 2015 = £24,000

UK BoE Base Rate in 2015 = 0.5%

 

Let's assume the average house was bought with a 10% deposit and the buyer found a mortgage at Base Rate + 2%, over 25 years. That is £828 a month mortgage, from £2,000 a month gross salary. 41% of salary.

[ECCOnoob]

Fine. Let's take 1975 as another example.

 

Average UK house price in 1975 = £10,388

Average UK full time salary in 1975 = £3,744

UK BoE Base Rate in 1975 = 10%

 

Let's assume the average house was bought with a 10% deposit and the buyer found a mortgage at Base Rate + 2%, over 25 years. That is £98 a month mortgage, from £312 a month gross salary. 31% of salary.

 

 

Compare with 2015.

 

Average UK house price in 2015 = £205,000.

Average UK full time salary in 2015 = £24,000

UK BoE Base Rate in 2015 = 0.5%

 

Let's assume the average house was bought with a 10% deposit and the buyer found a mortgage at Base Rate + 2%, over 25 years. That is £828 a month mortgage, from £2,000 a month gross salary. 41% of salary.

 

So... That leaves over £1172 each month to spend on other things. Hardly penniless. Lets also not totally forget that many homeowners paying such mortgage will be COUPLES so that could be anything up to £4000 each month coming into the pot with the same £828 mortgage payment going out. That leaves over £3k in the household to spend on everything else.

 

Fact is those paying £205k for a house are very very unlikely to be on the national average salary of £24k. They will be even more unlikely to be sole occupiers struggling with a single income.

 

There is a huge amount of distortion when it comes to "average" figures.

[WiseOwl182]

So... That leaves over £1172 each month to spend on other things. Hardly penniless. Lets also not totally forget that many homeowners paying such mortgage will be COUPLES so that could be anything up to £4000 each month coming into the pot with the same £828 mortgage payment going out. That leaves over £3k in the household to spend on everything else.

 

Fact is those paying £205k for a house are very very unlikely to be on the national average salary of £24k. They will be even more unlikely to be sole occupiers struggling with a single income.

 

There is a huge amount of distortion when it comes to "average" figures.

 

Three things:

 

1) That was gross not net take home, so they'd have even less left over to cover things.

 

2) It's still much more costly now than it was for boomers, however you look at it..

 

3) Couples now having to both work, even after having kids, was kind of my whole point. A lot of boomers women now moaning about retiring slightly later were able to either not work or go part time due to the lower mortgage costs.

 

The fact is it takes two professional jobs to buy an average sized house in a nice area of Sheffield now, the same house that boomers bought on one salary, and often from a lower paying job.

Edited November 11, 2015 by WiseOwl182