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How Are Brits Affording £350,000 New Builds on Average Salaries?

UK Finance Simplified

22,203 views

How are ordinary Brits buying £350,000 new-build homes on average salaries?
This video breaks down the real maths behind UK mortgage affordability, 6x income lending, 40-year mortgages, developer rate-buydown schemes, family deposits, Lifetime ISAs, estate management fees and the true monthly cost of buying a new build. We also compare buying vs renting to see which can actually leave you better off over time.

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The content provided here is strictly for informational and entertainment purposes. It does not constitute professional financial, medical, or psychological advice. Always consult a qualified professional before making decisions related to your health, finances, or personal well-being.

13 Comments

@JP19917 2 weeks ago

I think the script or voice processor hit a snag at 3:24, or it was talking with its mouth full while trying to eat a muffin!

@Mike-lb1hx 3 weeks ago

There's a few things I'd say on the figures 1) home owners tend to be earning more than avg so the loan to income will be lower 2) how many buy a 3/4 bed new build as their first home is limited 3) if its not their first home they'll have equity to put in 4) the avg rent doesn't matter its the rent she'd pay on the 350k house
Overall a useful video

@simon8864 12 days ago (edited)

Obviously £350k houses are bought by people earning well above average.

@creamcherry2592 9 days ago

Where I live the houses start from 350 000 and we call it cheap.
The average good size is over 500 000 now ...

@alewthwaite12 13 days ago

If 350k is the average house, 35k per person, assume 2 people so 70k per person. Then morgage operatesbat 4.5 salary for lending thats 315k morgage. Plus a 10% deposit. That sounds reasonable?

@stickyitchy 2 weeks ago

Rents have gone up some and become way more competitive given the new landlord laws. A house selling for 400k would rent at about 2250pm from the search in doing now. And assuming that the difference in rent vs mortgage payments is invested assumes an immense amount of discipline that very few, even financially ordained people, possess.

But a good first “overall average” pass

@niharshiplu 12 days ago (edited)

Just a humble question which been a mystery to me!Whoever taken the cheap mortgage during peak COVID period of 2021-2022 @1.5-2.0% interest rate, how they still would be managing to pay the mortgage payment once the fixed term Honeymoon period is over?As the average income didn't increased much in the same period..So from where families are managing that extra money from when high inflation and fuel cost is also denting everyone's monthly budget?

@EdGeyy 10 days ago

Bank of mum and dad.

As a man with a family and zero assistance from mum and dad, it kind of makes me feel sick.

But such is life.

@80y3r9 2 weeks ago

No way the 150k isn't without parents

@stingyringpiece 2 weeks ago (edited)

Youre assuming Rachel has £39k in the first place, AND invests most renters i know don't!!!!

@nazb1982 2 weeks ago

Nothing good about this at all. Bank prints the money from thin air and then effectively becomes the landlord collecting rent on Monopoly money. We needed to have very strict limits on banks a long time ago.

@ormsk954 8 days ago (edited)

Obviously buy an old house and live in it while you do it up over a few years. Don't buy a brand new car either and never lease anything.

@80y3r9 2 weeks ago

Basically just paying old people to keep voting at the cost of the next generation - amazing rewarding the people who benefited from the house price growth and punishing the people outside... Amazing