Rocket Man

I’ve been fairly busy at work today, but have been reading up on Northern Rock in anticipation of a future post on the topic (Cassilis asked if I was going to come back to the topic, and I’ll be delighted to oblige such a pleasant and reasoned fellow).

As preparation for that future screed, I was trying to get a feel for the way the mortgage market has changed in the wake of the credit crunch.  I noticed that if I were applying for a mortgage today, on the same terms I did just over a year ago, I’d find it practically impossible. All the 100% mortgages on the market seem to require a guarantor, include a rip-off arrangement fee, or are at a very high rate of interest (Equivalent to paying £300 a month more than I do now). 

I’m torn between being glad that I got on the housing ladder when I did and wondering how on earth someone living in London  is supposed to buy a place today without parents to help them financially. 

Even when 100% mortgages were easier to find than DWP CD-Roms, I could divide my friends* wealth and capital very neatly between those who had parents to help with a deposit and those that didn’t. It’s the great post-university class divide.  

*All of whom had about the same earning capability and social background- I don’t get out much. Well, either that or the wealthy, successful ones stopped speaking to me.**

** Actually, when I worked for P&G, they had a great scheme for 100% mortgages for employees, which I didn’t take advantage of because I couldn’t afford the moving costs, lawyers fees, furniture etc. That was pretty annoying but in large part my own fault because at the same time I could afford trips to Baja Beach club most weekends, so you get a sense of my priorities. Stupid boy.

I also didn’t take the free private health insurance, but that was y’know, a moral thing, so stupid in a different, more ideological way.