In message , Tim writes
Ahh, I see. That will teach me to barge in half way through a thread! I take your point.
- Vote on answer
- posted
17 years ago
Mortgage repayments to take home pay ratio.....
Loading thread data ...
- Vote on answer
- posted
17 years ago
Fair enough, I accept that I overestimated the value of annual increments.
I intend to when I get a moment, but consider this thought: If you measure payments in terms of "salary money", you have to measure the principal in the same terms. If you do that, then even if you pay nothing, the value of the principal will decay exponentially all by itself. If you *also* make payments, it will decay a hell of a lot faster.
- Vote on answer
- posted
17 years ago
In message , Tim writes
The only thing I can think of is shared ownership with a housing association.
- Vote on answer
- posted
17 years ago
Of course.
No it won't - unless the interest rate is less than salary inflation!
It will increase by a factor of (1+interest rate)/(1+salary inflation) in terms of "hours work".
So if you plug [1 - (1+interest rate)/(1+salary inflation) ] into the standard repayment formula you can work out what you need to pay in terms of "hours work" per month.