50 year mortgages - next gov scheme to prop up prices

Soldato
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Never have gone from something so **** to something really nice. Had to keep telling ourselves.. Only a few more months

I think this is definitely a key point. So many people want some form of luxury which really stunts how much they can save. And before some people say not everyone can afford to save even with the cheapest rent - that just echo's my point from my previous post, the housing market is moving to the point of being unaffordable unless you're earning above average wages.
 
Caporegime
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I think this is definitely a key point. So many people want some form of luxury which really stunts how much they can save. And before some people say not everyone can afford to save even with the cheapest rent - that just echo's my point from my previous post, the housing market is moving to the point of being unaffordable unless you're earning above average wages.

Ive lived in some dives to save on rent. Is it worth it? Not sure. One house seemed "damp" and that does affect health. But never would I rent in luxury. My newly single friend wants an inner city rental. So is probably paying 200 more than he could elsewhere. No issue with that as I don't know his goals but seems a waste to me.


It is. Average gets you noticeable less. Especially the last 2 years. Probably lost at least a bedroom. It's unsustainable. And that unsustainabiility might be about to play out
 

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Soldato
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seems absolutely barmy,

an alternative would have been 0 deposit morgages backed by HM Government for the first say 5 years to allow some equity to be put into the properties then over the lenders when theres a few quid of value in the property
 
Soldato
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Been quite common in Japan for a while IIRC, even 100 year mortgages apparently...
It's basically just renting your whole life with the downsides of owning a house. Still, anything to prop up house prices eh.
 
Soldato
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seems absolutely barmy,

an alternative would have been 0 deposit morgages backed by HM Government for the first say 5 years to allow some equity to be put into the properties then over the lenders when theres a few quid of value in the property

The problem is that would put quite a burden on the taxpayer. There's only so much of the pie to go around and seems everyone wants a chunk these days.
 
Associate
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The country is bankrupt, this is just another way of trying to hide the enormous debt that the country is in.

Look at this table and sort the column marked NIIP, note the debtors and creditors.


Before Blair got into office the UK was a net creditor, he and Brown went on an enormous spending spree and your great grand children will be stll paying for it.
 
Soldato
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Just thinking about long mortgages, that does mean alot of oeople would be able able to afford much better houses than they'd be able to rent out (for the same money) which is part of the point surely?
 
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so literally paying for something on the "never never" gonna own that in your life time.
is the new norm going to be kids never leaving home?

It's the current norm for more and more people it seems. At one of my old jobs a guy who used to take the pee about me living at my parents place, said guy stole from tescos as he couldn't afford food some weeks. 3 kids and misses at his rented home all day with streaming services etc. I wonder how is situation is right now. Not a pretty thought for the potential millions in that situation.
 
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Just thinking about long mortgages, that does mean alot of oeople would be able able to afford much better houses than they'd be able to rent out (for the same money) which is part of the point surely?

Theoretically yes, but unless controlled it will be manipulated and will drive up house prices even further.
 
Soldato
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Isnt this basically a lifetime interest only mortgage, or at least tends towards it as the term rises.

Here's another issue. Its now July and Im having to put my heating on because its so goddamn crap summer. This country is fk ****.
 
Soldato
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Isnt this basically a lifetime interest only mortgage, or at least tends towards it as the term rises.

Here's another issue. Its now July and Im having to put my heating on because its so goddamn crap summer. This country is fk ****.
Heating on? Have you won the lottery?
 
Soldato
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It might not be hot, but it's hardly freezing. Stop lounging around the house in your shorts.
 
Caporegime
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completely normal in many countries. My mortgage would be about 80 years and i will long be dead getting this mortgage at 39.

What is the big fuss? You pay your mortgage monthly until you sell the house or you die. When your family has left home you can downsize reducing mortgage, or perhaps when you retire. When you and your partner die then your children inherit the property and the outstanding mortgage. It is extremely unlikely your children will want the house and in any case with multiple children it because difficult to properly divide the assets. So your kids have the house sold and the estate divided. Nothing stops a child taking over the mortgage if that is what they want, and they meet the affordability requirements.
 
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Have a few thoughts.

Rate : Assume your not getting a fixed rate for 50 years, rate would be terribad if you did anyway, so in reality its not really 50 years for the majority who would switch at some point anyways and could take a shorter term based on changed circumstances, assuming they could of course. Which brings me to :

Capital (LTV) : I haven't seen any charts for % mortgage repaid over 50 years, but its still going to add up. I would guess that around 30 years about 50% capital repayment has been made.
50 years of typical house price inflation, say 50% paid off original borrowings at 30 years, by year 30 the LTV would be low, potentially very low.
30 years of even 2% average inflation of wages is 81% increase, if its 3% its 143% increase (very sensitive over this length of time).

My major concern is that I cannot see how children would be able to get their own mortgage if they were tied to the parents still outstanding after say 20 years.
How would banks / building societies assess the risk fairly.
 
Caporegime
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The country is bankrupt, this is just another way of trying to hide the enormous debt that the country is in.

Look at this table and sort the column marked NIIP, note the debtors and creditors.


Before Blair got into office the UK was a net creditor, he and Brown went on an enormous spending spree and your great grand children will be stll paying for it.

Can't afford kids!
 
Caporegime
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It is called a pension , the same process as used to pay to live in a retirement community or elderly care home for example, or to pay rent etc. Even without a mortgage you still have to afford the property taxes, utilities, maintenance, insurance and all your other life costs from food to healthcare. With 50-100 year mortgage, the monthly mortgage is extremely small relative to everything else.
 
Caporegime
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completely normal in many countries. My mortgage would be about 80 years and i will long be dead getting this mortgage at 39.

What is the big fuss? You pay your mortgage monthly until you sell the house or you die. When your family has left home you can downsize reducing mortgage, or perhaps when you retire. When you and your partner die then your children inherit the property and the outstanding mortgage. It is extremely unlikely your children will want the house and in any case with multiple children it because difficult to properly divide the assets. So your kids have the house sold and the estate divided. Nothing stops a child taking over the mortgage if that is what they want, and they meet the affordability requirements.

I think it's mainly because this is only being introduced to prop house prices up.
It's yet more burden on the next generation.

It's creating a house of cards where house prices are being artificially propped up again and again.

The next FTB has a harder job than the one before. As a few said it's a tend towards interest only mortgages where you have all the burdens of a house but none of the benefits.

It's a bodge job on something that needs fixing
 
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