Sunday, Mar 25, 2007
Subprime market alive and kicking?
Sunday Telegraph: 25-year mortgage for a man aged 102
So the subprime market is alive and kicking but for how much longer? I don't know whether to laugh or cry.
"A 102-year-old has been granted a 25-year, £200,000 mortgage. It will run until he is 127.
The pensioner, from East Sussex, is believed to be the oldest person in the UK to be granted a mortgage. The revelation was greeted with alarm by debt advisors.
He faces repayments of £958 a month on the interest-only loan and intends to pay them from rental income and make money from the property's increase in value over time."
Posted by monty @ 01:35 PM (149 views) Add Comment
13 Comments
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1. Davros said...
> Richard Shone, 75, from north London, has taken out a 25-year interest-only mortgage of £120,000 - due to be paid off when he reaches 100 - to buy property in his area.
> He and his wife, Janet, 73, plan to add the property to their portfolio of 10 "buy-to-let" homes which they have built up since they retired.
10 buy to lets! If ever there was proof the boom is going to end in tears, this is it.
People must be well and truly mad.
2. royston said...
Thank goodness we don't have a sub-prime mortgage problem like those silly Americans!
3. royston said...
Although, when you think about, you can't really blame the mortgagee - it's a one-way bet
upside: bigger inheritance to pass on to his family.
downside: ?
I wonder if he gets life insurance with the mortgage.
Time to shift my money into tulip bulbs. Every other market seems to be showing clear signs of peaking.
4. Scott said...
I think it would be really funny if he makes it to the end.
5. harold said...
While I admire the guy's enterprise, I wouldn't recommend this line of investment to a twenty-year-old. Although he may not live to see negative equity, his estate probably will - which means his children, grandchildren and possibly even great-grandchildren inheriting debt. Not a legacy I'd want to leave behind.
This is a good symbol of the madness of the cheap-money industry, that has been allowed to flurish with the tacit approval of... well, you know who.
6. Hahaha Brilliant! said...
Hardly Madness at his Age considering he most lightly had a role in WW2
Pinnacle of takeing the Piss out of the 30 year old Pack of Cards Credit System, Top Marks to him.
7. Edb said...
No please this must be a spoof - is it from the Onion? Is it April 1? No? My God were all doomed, doomed I tell you!
8. Trendinvestor said...
How completely bizzare is this? what a complete Fuck*n joke of a country Britain has become. MORT = DEATH and GAGE = LOAN very true in this case. Many countries in the world mortgages are illegal as they are classified as USURY. Of course in Blair and Bush,s "democracies" for "Freedom" loving people they are all the rage and the bigger the better.
When the violence starts the only way to change anything, i am well up for it. These people deserve to be strung up
9. paul said...
"Time to shift my money into tulip bulbs."
Shhh, I have all my savings in tulip bulbs. There's definitely going to be a supply problem there, and well everyone needs something to put in their garden so prices can only go up!
10. Scott said...
I think you are wrong Paul. In the future, people won't have gardens. They will be concreted over to make room for more bedrooms. You will be lucky if there is room to park your car.
11. sirgoogle said...
I hear the black tulips are getting the best prices !!
Our Dutch neighbour told us that when he was a little kid towards the end of WWII he had to eat tulip bulbs as the country was in famine !
12. Davros said...
Do you reckon the 102 year old is 'in it for the long term'?
13. inbreda said...
This guy is bright.
Ordinarily a 102 (or even 50+) year old would not be granted a mortgage. In the current crazy market it is possible - so this is the one and only chance for this nonsense to happen.
When he dies, which I am sure (and no disrespect to him) will be quite soon, he probably has insurance that will cover the remaining debt. His heirs will inheret ten properties, and possibly no debt.
Absolute genius, and never been possible to do before - and probably wont ever be possible in the future.
Hats off to the mad dieing fool.