50 year mortgages - next gov scheme to prop up prices

[Mercenary Keyboard Warrior]

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

Personally I dont think house prices are being artificially propped up, they remain in short supply and in demand.
So I dont think with the supply where it is now that house prices are artificially high, they are at market rate.
Whats far worse for the man on the street is boom bust in housing prices based on the above. The only people who benefit during this time are a few FTBs (but the market tends to be capital restricted and also snarled up and not moving much during these times), plus cash rich buyers who can buy the dip.

Interest only becomes less and less relevant as the term extends, the tiny portion that is capital repayment at the start on a very long term is very very worth paying.

But as I said, I would expect over the term for things to change and for people to reassess the term and amount, its the logical thing to do, each house move, and or mortgage offer people should review and change course depending on their situation.

 

[413x]

If its cheaper than renting (including house costs) a near interest only that isn't costly to get out of is not a bad thing for the individual.
I myself have benefited from LISA. and have lowered my term as my earnings went up

I do think they are being helped up. But I suppose even the concept of a mortgage can be seen as a prop up.

I suppose with capitalism and everything having a price it was/is inevitable for richer people to buy housing to rent out whatever the price.




I do strongly feel that the every growing wealth divide we are creating needs addressing soon.

With dwindling state support, shrinking of personal assets and generally costs up across the board we are heading into a bleak future where state pensions are firstly means tested. Then gone.
Same with NHS too.

This is fine if you can build up capital to use to support yourself. But this is obviously declining too.


Particularly for any kids now.. I don't want to think about how little support there might be in thier later years without side radical change

 

[theone8181]

My main concern would be how to afford to continue to pay the mortgage in retirement.

Oh don't worry, retirement age will increase to 90 .

 

[Semple]

If its cheaper than renting (including house costs) a near interest only that isn't costly to get out of is not a bad thing for the individual.
I myself have benefited from LISA. and have lowered my term as my earnings went up

I do think they are being helped up. But I suppose even the concept of a mortgage can be seen as a prop up.

I suppose with capitalism and everything having a price it was/is inevitable for richer people to buy housing to rent out whatever the price.

Without doing the numbers, I'd imagine it would be cheaper to have a lifetime mortgage (even if it never gets paid off) versus a life of private rent.

It also gives a massive benefit to one thing renters want more than anything - security. It means there's no threat of eviction if the LL decides they want to sell the house. They're no longer reliant on a LL to fix/repair issues.

I do strongly feel that the every growing wealth divide we are creating needs addressing soon.

With dwindling state support, shrinking of personal assets and generally costs up across the board we are heading into a bleak future where state pensions are firstly means tested.

You do know that the wealth divide will never be addressed? It's just never going to happen.

Regarding the other points, I'd echo my earlier reply. If anything this should be a good motivator for kids to get a good education and land in a good job, because if they don't do that then they're looking at a very bleak future with dwindling state support as you've mentioned.

 

[413x]

Without doing the numbers, I'd imagine it would be cheaper to have a lifetime mortgage (even if it never gets paid off) versus a life of private rent.

It also gives a massive benefit to one thing renters want more than anything - security. It means there's no threat of eviction if the LL decides they want to sell the house. They're no longer reliant on a LL to fix/repair issues.



You do know that the wealth divide will never be addressed? It's just never going to happen.

Regarding the other points, I'd echo my earlier reply. If anything this should be a good motivator for kids to get a good education and land in a good job, because if they don't do that then they're looking at a very bleak future with dwindling state support as you've mentioned.

I know. I know it won't be addressed. Same way as I don't think we'll get on top of the climate crisis.
Maybe I'll watch district 9 and get a nice reminder of the future!

I am morbidly curious as to how it will play out.
Will there be a snap? Will the volume of the "have nots" get so large there's some sort of overthrow?
Or will it (most likely) just continue until the majority people are just effectively a commodity for the rich to toy with? Even more obvious than it is now.

 

[Semple]

I know. I know it won't be addressed. Same way as I don't think we'll get on top of the climate crisis.
Maybe I'll watch district 9 and get a nice reminder of the future!

I am morbidly curious as to how it will play out.
Will there be a snap? Will the volume of the "have nots" get so large there's some sort of overthrow?
Or will it (most likely) just continue until the majority people are just effectively a commodity for the rich to toy with? Even more obvious than it is now.

I think that's how it would play out if it were a film.

Realistically the wealth system isn't as divided / black or white as the media makes out. There's a definite inequality when 10% own nearly half of all wealth.

But it's the bit between the top 10% and bottom 10% where the majority of people fall. (To fall in the bottom 10% means you'd have assets of less than 15.5k). Most people in this region will be able to get by, so they're not likely to go out rioting etc.

The middle region may well get smaller, i.e. you may need 50k of assets to be within that region, but it's still likely to make up the majority of the population.

 

[413x]

I think that's how it would play out if it were a film.

Realistically the wealth system isn't as divided / black or white as the media makes out. There's a definite inequality when 10% own nearly half of all wealth.

But it's the bit between the top 10% and bottom 10% where the majority of people fall. (To fall in the bottom 10% means you'd have assets of less than 15.5k). Most people in this region will be able to get by, so they're not likely to go out rioting etc.

The middle region may well get smaller, i.e. you may need 50k of assets to be within that region, but it's still likely to make up the majority of the population.

Yeah I don't see anything like riots happening near term. Too many on the "gravy train " that also probably don't want it drailed.
Who wants a crash when you're on it?


I guess those on the train will likely dwindle quickly with the cost of living, rising inflation, rising rates and most important... If the jobs market suffers.

But still not likely enough to want to derail it.

The new mortgage rules I guess allow more to join the train. More people on the train the less likely the population want it derailed.

It's snowpiercer!
Off the train is ****
On the train is nice.
But the tracks are falling apart.
Even on the train is there's a clear class system.