After 8 seasons spanning 73 episodes and bringing together 566 characters, HBO have spent an estimated $1,460,600,000 to bring George R.R. Martin’s vision to the screen. But has this investment made them richer than the Iron Bank of Braavos or will they have to emulate the Lannister’s in always paying their debts?

ThinkMoney have played the ‘Game of Numbers’ to find out just how profitable the sprawling epic has been to HBO ahead of the season finale. By analysing viewing figures, subscriptions costs and production costs, they found that:

• Whilst the budgets of Game of Thrones have steadily increased over 8 seasons, due to the huge popularity of the show it now only costs HBO $2.37 a viewer per season.
• With a total show budget of $1.5 Billion, the show has earned $3.1 Billion through HBO subscriptions alone.
• All eight seasons, spanning 73 episodes and bringing together 566 characters, cost HBO a mere $30.90 per viewer.
• Game of Thrones Season Eight has brought in an average of $88 million dollars PER EPISODE from HBO subscriptions.
• Jon Snow is the rightful heir to the throne when it comes to earnings, being responsible for $501 million of HBOs earnings based on his time on screen across all eight seasons.
• When looking at which characters have earned the most for HBO per minute on screen, Grey Worm tops the list, earning $953,378 for every minute on screen.

Three in five (60%) people surveyed by Masthaven bank believes that they would find it hard to get a mortgage today - half (50%) of UK homeowners surveyed feel this way, indicating some may feel like mortgage prisoners.

According to a new report by challenger bank Masthaven, the mortgage market is not in tune with modern consumers' evolving needs; the world has changed and the mortgage industry needs to play catch up. Today the bank publishes new data which indicates that UK householders sense a ‘computer says no’ mentality from mortgage lenders.

Masthaven’s Game of Loans report found many people surveyed believe they wouldn’t get a mortgage today. The poll, conducted by Opinium, reveals that both would-be and existing homebuyers are unsure if lenders would support them: 60% of the adults surveyed believe that if they were to buy a home today, it would be hard to get a mortgage. The bank is concerned that half (50%) of all adults who are homeowners surveyed feel this way; and it’s worried that they may feel like mortgage prisoners.

The new study - comprising two surveys of over 2,000 UK adults, in January and July 2017 - found that almost two in three (65%) people polled believes that getting a mortgage is about ‘box ticking’ not the reality of someone’s situation. This opinion has risen markedly by ten percentage points (from 55%) since the first poll in January.

It also highlights how people feel the mortgage market must adapt to appreciate their changing lives – a large majority (81%) of people surveyed believe lenders should make an effort to understand homebuyers’ individual circumstances. This view is strong among people aged 55 or over (88%), UK homeowners (84%) and parents (82%).

Age is a contentious issue

Nearly three in four (74%) people surveyed said they feel that meeting repayment criteria should determine mortgage eligibility, not age. Moreover, three in five (60%) of those surveyed believes that everyone who can afford the repayments when they retire should be eligible for a mortgage. This view has risen up from 53% since the January poll.

Commenting on the findings, Jon Hall, Managing Director of Masthaven said: “Just as homes have kerb-appeal to buyers, it seems people have a perceived sense of their own mortgage-appeal to lenders. Our report highlights how many people believe they have low or no appeal to mortgage lenders; they have little faith in the market. Whether these homeowners’ beliefs are founded or not, the industry cannot ignore how customers feel – their perceptions need attention. I believe the industry can adapt, and we’re publishing the report to encourage lenders to look at the new face of home borrowing: ordinary people with normal lives. The UK mortgage industry must create products and processes that are fit-for-purpose for society today – a world that’s rapidly evolved and looks different to even just a few years ago.”

Time for change

Game of Loans examines four audiences segments: self-employed, older borrowers, parents, and younger borrowers. Masthaven suggests that, despite new mortgage regulations providing a more stable framework, lenders have not adapted their approaches to cope with evolving financial lives. The bank is urging lenders to look closer at individual borrowers’ lives, so they can create products and processes that are fit for modern life. For example:

• Self-employed: Given the continuing rise of this workforce, the mortgage industry needs to take a fresh look at how it can support them. Affordability models need to reflect the concept of self-employed income; in many instances self-employed borrowers cannot even get past the initial mortgage selection criteria and progress their case to a trained mortgage underwriter, who would have the skills to be able to read and assess their company accounts.
• Parents: The robust affordability criteria have been set for a very good reason, but in many cases parents believe they can afford to make the mortgage repayments. Responsible lenders should be working with brokers to help find affordable solutions that are fit for modern families.
• Younger borrowers: Continued innovation is needed to help first-time buyers onto the property ladder. From unlocking intergenerational wealth and helping grandparents and parents with equity in their homes support their families, to boosting the building of affordable homes.
• Older borrowers:  The old adage of paying off your mortgage pre-retirement simply isn’t realistic for many people today. As the Government launches Lifetime ISAs to bolster home ownership for the under 40s, it should also consider solutions for an ageing population which keeps mortgages alive for longer.

Jon Hall added: “The audiences examined in our report aren’t niche groups on the fringes of society, they’re growing segments of the population with modern needs that a thriving mortgage market must address. It shouldn’t be 'game over' for many homebuyers before they’ve even put a foot on the property ladder. As a bank we need to make sure our application of the affordability rules are revisited regularly, to check hard-working householders are not being excluded from the mortgage market.  As a specialist lender we put people at the heart of the solution. Manual underwriting drives our decision-making rather than technology, and we work in tandem with brokers to assess customers’ individual needs.  I’m concerned to hear so many borrowers feel unsupported when in reality an experienced lender, with flexible processes and great broker partnerships, may be able to help.”

Other key findings

Alongside how difficult they felt it would be to get a mortgage, Masthaven asked people their views on other topics, including: the mortgage process, the UK housing shortage, intergenerational disparity, and lending into retirement.

Over half (55%) of self-employed respondents believes they would find it hard to get a mortgage today; and 70% of them feel that getting a mortgage is about which financial boxes you ‘tick’, not the reality of your situation.

Respondents’ perception of their ‘mortgage-appeal’ varied across the UK. Respondents in Wales have the strongest doubts - 72% believe they would find it hard to get a mortgage today, compared to 53% in Scotland. 68% of people in the East of England feel it would be hard, compared to 50% in Yorkshire & Humberside.

While many (73%) respondents have never used a mortgage broker or adviser, over a quarter (27%) have. Among the latter group, almost one in five (19%) said it was because their circumstances were “complicated”.

Three in four (75%) respondents believes it is unfair the young are struggling to get onto the housing ladder today. This view rises to 78% among people aged 55 or over. It drops to 72% among men, but rises to 78% among women.

Many people surveyed believe the UK housing gap will grow:  61% predict the shortage of affordable homes will increase in the next five years; this rises to 64% among people aged 55+ and is felt strongest (68%) in Scotland.

Nearly three in five (58%) respondents believes the price difference between homes in the north and south of the UK will increase in the next five years, but views vary - ranging from 79% in Newcastle to 44% in Cardiff.

More than two in three (67%) people polled thinks UK interest rates will increase in the next five years; meanwhile almost a third (32%) believes the average wage of homeowners will decrease in the next five years.

(Source: Masthaven Bank)

Russell Smith, founder of Russell Smith Chartered Accountants discusses with Finance Monthly poignant financial lessons we can all take away from HBO’s hit TV series Game of Thrones.

In the quest for financial supremacy, we often take advice from those who’ve already achieved great success. Many will read articles about how to secure wealth and maintain steady finances. Others will go as far to train in the art making money, or at least attend conferences and seminars that promise to unlock secrets of healthy financial perpetuity.

Yet, the pursuit of financial wisdom need not always be sought from real life examples. Game of Thrones is a fascinating, brutal world; one that inspires great creativity and has millions of viewers revelling in world-class entertainment. For many, what makes Game of Thrones enjoyable is that, while it’s a world inhabited by swords, magic and dragons, it is grounded in realism that parallels our world and history.

It’s a fantasy, but a fantasy mired with the harsh reality of our own world.

The result is that, while it may be a fictional land, Westeros is a continent full of genius minds from which we can learn some very real lessons about finance. To pick the great business minds of Westeros is just as valuable as picking those in our own world. So, what exactly can we learn from masterminds of G.R.R Martin’s Ice and Fire saga?

Chaos is a Ladder

Lord Petyr Baelish, otherwise known as Littlefinger, is a true rags-to-riches story. Through a combination of intellect and circumstance, he manages to go from low-born peasant to one of the wealthiest and powerful men in all of Westeros — and he did all by climbing that ladder of chaos.

But how exactly can real business owners climb a chaos ladder to financial success? It’s all about stabiliy.

Petyr Baelish took advantage of chaos by offering those around him stability. His climb to success began when he became a Customs Officer in a small provincial town. In an era following war and uncertainty, he proved himself to be a reliable moneymaker, which resulted in him rising to the rank of Master of Coin in King’s Landing. Littlefinger kept out of the conflicts and turmoil and instead focused on being a sturdy pillar on which others could rely. While others fell, he continued to climb.

In Westeros and in the business world, people appreciate stability. They appreciate a sure bet. Anyone can climb a ladder of chaos to financial success by proving themselves to be a safer, more reliable option than their competitors.

Personal Survival is All About Limited Liability

Before Robert’s Rebellion, the Lannisters were in trouble. Their gold mines were running dry and Tywin had to find a way to keep his family’s wealth alive. He managed it, of course, by helping to defeat the Targaryens and putting Robert Baratheon on the throne. But how did this allow him to stay the wealthiest man in Westeros?

First, it allowed him to rake in money through marriage to the crown, taxation and the acquisition of assets such as castles. However, it also allowed him to do something any business owner can in the real world can do as well: protect his personal financial health through limiting liability.

Through the acquisition of the crown, Tywin was able to shift financial burdens and responsibilities off the Lannister House and onto the Kingdom of Westeros itself, just as a business owner establishing a limited company can ensure they are protected should their business go bankrupt.

Through this tactic, Tywin could earn money through the crown while securing loans against it that allowed him to maintain his family's wealth; all while ensuring, should they be unable to pay their debts, the Lannister family would be spared financial ruin.

Business owners of the real world can follow Tywin’s example, setting up LTDs instead of taking on all the financial risks involved in business by running their operation as a self-employed entrepreneur.

Emotion and Financial Success Do Not Mix

Emotions and financial success do not go hand in hand. In Westeros, we’ve seen countless examples of leaders making decisions based on their emotional ties — and the results are not good.

This includes Robb Stark marrying his true love despite brokering a deal with the Freys, nearly destroying House Stark, and Daenerys suffering huge losses after failing to respect the culture of her new home, losing support the people until she eventually reopened the fighting pits. Cersei also lets her emotions control her actions, which ultimately leads to the death of two of her children, Tommen and Myrcella.

Other characters, characters who don’t allow emotions to cloud their judgement, find much greater success in Westeros. Tywin is a man who runs on cold, calculating plans and his only folly was not locking his bathroom door. Petyr Baelish also thinks in terms of practicalities and not allegiances, which has seen him become the wealthy man he is today. And, of course, we have the sellsword Bronn, who never mixes emotions with business, allowing him to make a killing off the Lannisters.

Those who have assured themselves financial success have done so by making choices that are in their best interests, casting off any emotional involvement. Despite his daughter’s disdain, Tywin was determined to see her marriage to Ser Loras Tyrell go ahead for the sake of the family’s wealth, and Bronn refused to fight as Tyrion’s champion, as he knew it wasn’t a smart decision on his part — even though his friend was doomed without him.

What Game of Thrones teaches us is that you must follow the examples of those who don’t let emotions impact their judgement. Survival in Westeros and in the financial world is about actions that benefit you and help you move forward, not that support others at your own expense.

Prepare for Your Financial Winter

In Westeros, winter has come.

While Jon Snow is hurriedly preparing to help his people survive, most others in The Seven Kingdoms are ignoring the impending threat. When winter comes for the south, how do you think King’s Landing will fare?

This isn’t the first time winter has come for our characters, though. The Lannisters faced a metaphorical winter when their gold mines ran dry. But, like Jon Snow, Tywin was prepared for the cold months ahead. The Lannister leader had been planning for the days when his resources would run out and was ready to keep the family out of financial danger.

Being ignorant of upcoming threats to your financial health is a surefire way to collapse. Preparation is key to survival. In Westeros, winter was inevitable. In business, financial hardships are the same. At some point, you will likely have to weather an economic winter. It may be a global financial crisis — which many predict is coming sooner rather than later — or it may be something specific to your firm, such as a move in consumer interest, supplier demands or a lack of gold in your mines.

Whatever the potential is for hardship, if you do not prepare, you will not survive. Winter will come. It isn’t a question of if, but when.