>> £300,000 divided by 30 years = £10,000 per year. So, a third of the
>> highest income available. And that's neglecting the fact that they
>> presumably charge you 80% APR or so on the loan...
> 
> 80% is illegal pretty much everywhere.  Try more like 5%-7% for the 
> average.

Illegal? That's impressive. I wonder how the banks have managed to not 
campaign to get that "fixed". You know, given that banks basically 
operate by extorting money from people...

> And 30K is not the "highest income available" - I know plenty of people 
> who make more than that.

OK, I rephrase. If you happen to be a doctor or a politician or have a 
PhD in something, sure, maybe you can earn more than £30,000 a year. I 
personally don't know of anybody who has managed to do this. (With the 
obvious exception of the upper management at the company I work for.)

> Clearly it's not an impossible feat as there are millions of homeowners 
> in the UK, right?

As I understand it, most of them bought houses before the prices became 
as stupid as they are today...

(I gather the idea was that eventually when prices were so high nobody 
could afford them, prices would start to come back down again. Instead, 
the banking sector went thermonuclear.)

-- 
http://blog.orphi.me.uk/
http://www.zazzle.com/MathematicalOrchid*

Post a reply to this message