Research commissioned by a mortgage lender suggests that 74 per cent of key workers believe they may never own their own homes.
And 94 per cent of key workers surveyed believe they could not get a mortgage in the current circumstances.with 25 per cent predicting it will be five years or more before they could do so.
Some 22 per cent say they are struggling financially, and on average are left with just £130 of disposable income left each month.
Just under 50 per cent say they have considered changing careers to earn more and possibly buy a home, rising to 59 per cent among those aged 18 to 34.
The survey was compiled by research agency Opinium and 2,000 keyworkers across a range of industries.
Commenting on the research, Anth Mooney - chief executive of Vida mortgages which commissioned the survey - says: “Key workers were the backbone of this country through the last two and a half years, and it is really concerning to find that 74 per cent of them worry that they will never be able to own their own home.
“It is also particularly worrying that nearly 50 per cent of these people who perform vital roles are actively considering changing careers in order to buy a home. If the pandemic has taught us anything it is that we need these people, and the vital services, they perform.”
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Agree totally with this article, my kids are in the same boat…. But…. Like a lot of us on this forum I have options to financially assist them, which I will be doing, what about the poor souls where their parents did not buy other properties years ago and now have nothing to re-finance or sell ?? Up the river that’s what, this government should hang its head in shame… but it won’t of course.
The article is using the words 'key worker' a lot. It means someone earning close to minimum wage. Someone who if single will be struggling financially especially if they have to pay bus fares to get to work. However, if they have children they will have significant UC top ups. As a tenant they would be entitled to the LHA element of UC. If they were a homeowner they wouldn't get any help with their housing costs. Their UC top up would be much, much lower than a tenant received and they would have to pay for any property repairs and insurance themselves whereas that sort of thing is included in the rent.
There are advantages to being a tenant and it really isn't helpful for the media to constantly portray being a tenant as being disadvantaged or downtrodden.
Even if someone is earning enough to buy a house they may well choose to be a tenant because they could afford to rent a much better house. That's purely down to the different affordability multiples used by mortgage lenders and letting agents.
I remember in the early seventies, newly married and paying £65 per month in rent (a third of my take home pay). We saved all of my wife's salary for a house deposit. With a 25% deposit saved in our Building Society, it refused me a mortgage where the after tax payments were around £65 per month on the basis I couldn't afford that. I couldn't buy until I had another pay rise and prices rose further!
Similarly Robert late 70s Abbey National refused me a mortgage despite having 50% deposit held in their account, walked into Barclays and spoke to the stand in bank manager, first class letter next morning offering me the money, I can only speak as I find but Barclays have been brilliant to me
50 year mortgages..basically debt slavery for life
Twenty years ago interest only mortgages were very popular. Fantastic product for people with some level of financial discipline.
Thing is Jo very few people these days have any financial sense or discipline, they seem to like living false life styles based on debt
What is wrong with a fifty year mortgage! I daresay i will be paying mortgages for this term. I agree with Jo's comments, don't demonise the rental/tenant market. I have rented, I am now a Landlord. As a Landlord I have also rented, where I have had to re-locate. There are many options why people do rent or decide to buy.
For most of us to buy that first house takes planning and sacrifice. I bought in late 80's and with interest of 15.6% it took all my wages and a week's worth of my partners. We lived very simply for 3 years until rates came down.
We did not have help to buy and other schemes that this Government are stupidly looking to introduce.
I do welcome back 5% deposit mortgages though, as for an average property that is still a lot of money.
With low interest rates it is still a good time to buy, though I would advise any buyer to over pay as much as they can reasonably afford as rates will only be going up.
At the end of your term they’ll take it off you in inheritance tax
Which is why a 50 year term or interest only isn't a bad thing. There would be less equity for the government to tax.
Leaving people with more disposable income now would help create jobs and bring in income tax revenue, NI and VAT now. People piling all their money into short term mortgages does nothing for the economy until many years into the future.
Nurses , doctors , police , firemen etc should be given free accommodation or at the very least highly subsidised
They’re real key workers not like the morons at the council , if they all quit tomorrow I doubt anyone would notice
We didn't notice when they were all furloughed for many months and then "worked from home".
Only the dumps and bin lorries were missed.
50 year mortgages are basically renting !
I would never sign up to a 50 yr mortgage
Edwin
Not true. The capital appreciation still belongs to the owner, even with a mortgage.
I still have around £1 million interest only mortgages on a £4 million portfolio. If I were to sell properties to get debt free I would save under £20k pa in loan interest but lose over £60k in rental income. The full £4 million portfolio continues to grow, not just the debt free element.
I am now 72 and over the next 20 years expect to pay around £400k interest and earn around £1.2 million rent on the £1 million of property still mortgaged. I will also have £1 million less in my estate and so save my descendants £400k in inheritance tax, effectively making this £1 million interest free based on current interest and tax rates.
Interest only mortgages can be very useful if used properly and are totally different to rental payments.
I look forward to chatting to you Robert on here in 20 yrs time when you are 92 and I will be nearly 89
I hope I will be here in 20 years tim when I will be 97 and hopefully still compos mentis enough to chat with anyone!!!!!
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