First-time buyers struggling to raise deposits for season tickets

[Surfer01]

An industry survey has revealed that almost half of prospective buyers believe it will take them seven years or more to raise the deposit they need to purchase a season ticket allowing them to travel to work by train.

 

 

‘In the current economic climate, how anyone can expect me to raise £4,360 to travel into London for the year is beyond me,’ said Sally Dyson of Stevenage. ‘I got a mortgage for my home but no one seems prepared to lend me the money I need to get to work.

 

Until the banks start lending again people like me can’t even hope to get on the season ticket ladder.’

 

 

Those that have managed to secure loans for season tickets say it was a rigorous process. ‘It took a long time to persuade a bank that lending me the money to get from Orpington to London Victoria was a wise investment,’ said Darren Tulley.

 

‘They did a full credit check and wanted to see a year’s worth of payslips and bank statements. In the end they only agreed when I put my house up as collateral.’

 

 

But for many moving from renting a monthly return to owning an annual season ticket remains only a dream. ‘My dad left me his old season ticket to use as equity, but it was on the market for nine months and I didn’t even have one viewer,’ complained Mark Costa of Colchester in Essex. ‘In the end I had to walk to work.

 

I set off first thing Monday and got to London by Wednesday morning, but by the time I’d opened a few emails it was time to leave again for the weekend. Luckily now it’s a much shorter commute to the Jobcentre.’

 

 

While season ticket price increases have been limited this year, rail companies insist that train tickets remain a sound investment. ‘It’s still a buyer’s market,’ said Michael Roberts, chief executive of the Association of Train Operating Companies.

 

‘Just look at the off-peak returns we sold in 2011 – if we were selling them today they’d fetch at least 20% more.’

Edited December 31, 2012 by citizenB

[honeybee13]

Hello there.

 

I believe some employers offer loans to cover a season ticket.

 

My best, HB

[RebeccaPidgeon]

An industry survey has revealed that almost half of prospective buyers believe it will take them seven years or more to raise the deposit they need to purchase a season ticket allowing them to travel to work by train.

‘In the current economic climate, how anyone can expect me to raise £4,360 to travel into London for the year is beyond me,’ said Sally Dyson of Stevenage. ‘I got a mortgage for my home but no one seems prepared to lend me the money I need to get to work. Until the banks start lending again people like me can’t even hope to get on the season ticket ladder.’

Those that have managed to secure loans for season tickets say it was a rigorous process. ‘It took a long time to persuade a bank that lending me the money to get from Orpington to London Victoria was a wise investment,’ said Darren Tulley. ‘They did a full credit check and wanted to see a year’s worth of payslips and bank statements. In the end they only agreed when I put my house up as collateral.’

But for many moving from renting a monthly return to owning an annual season ticket remains only a dream. ‘My dad left me his old season ticket to use as equity, but it was on the market for nine months and I didn’t even have one viewer,’ complained Mark Costa of Colchester in Essex. ‘In the end I had to walk to work. I set off first thing Monday and got to London by Wednesday morning, but by the time I’d opened a few emails it was time to leave again for the weekend. Luckily now it’s a much shorter commute to the Jobcentre.’

While season ticket price increases have been limited this year, rail companies insist that train tickets remain a sound investment. ‘It’s still a buyer’s market,’ said Michael Roberts, chief executive of the Association of Train Operating Companies. ‘Just look at the off-peak returns we sold in 2011 – if we were selling them today they’d fetch at least 20% more.’

It is astonishing that Banks would not offer such reckless loans to existing customers.... but, more fools they if they did offer loans to customers who could not afford the repayment.

[firstclassx]

A bit of a non-story really.

 

Say you have a £4000 Annual season ticket, if you travel 300 of those days, that is only £13.30 a day.

 

It's not like you are forced to buy annual tickets either. You have weekly, monthly and any period you choose between 1 month and 1 year.

 

If you can't afford the Annual season, you would just buy 12 x Monthly tickets or 48 x Weekly etc.

 

After Annual Leave etc, you would probably only really buy 11.

 

If you can't afford at least the monthly season ticket, you are living beyond your means and need to downsize/relocate/get a new job.

 

Get a 0% credit card, stick it on that for a year and pay it off each month, (e.g. £330 on a £4000 ticket).

 

Compare it to driving, too.

You need up front capital to buy a car.

Then insurance and tax - up front.

Petrol

Maintenance

De-valuation the more miles you use it

Car Parking

Congestion Charge

 

The season tickets work out very competitive.

Edited December 31, 2012 by firstclassx

[Surfer01]

Lighten up people. It was a totally tongue firmly in cheek post or a post in jest which is another name for joke. I have no idea whatsoever how much a seasonal ticket costs or even if they exist. Maybe I was closer to the truth than I suspected!

[LaughingGirl]

Well I thought it was funny, surfer!

[Surfer01]

Well I thought it was funny, surfer!

 

At last. Someone with a sense of humour.

[dreadpiratesteve]

Did get me going for a second but saw the funny side

 

HB is right though, some employers do offer a "season ticket" loan scheme.

[Feebee_71]

It was the bit where surfer01 mentioned someone had been left one as collateral and another complained they hadn't had any viewings of theirs despite it being on tim market for months that showed it was a joke rather than a problem someone was experiencing - though, with the proliferation of minimum wage jobs and the requirement to travel up to 90 minutes from home (for me that would include Southampton in one direction and Heartfordshire in another) being set by JCP, there probably people out there with exactly this issue!!

 

Feebee_71