Jump to content
House Price Crash Forum
Pauly_Boy

53% Of Support For Mortgage Interest Payments Go To Those Over The Age Of 60.

Recommended Posts

Below is a comment from the following article ...

http://blogs.telegraph.co.uk/finance/ianmcowie/100007530/how-house-prices-and-debts-are-building-ugly-tensions-between-parents-and-their-children/

isambard2000

Today 12:23 PM

Recommended by

28 people

"People of my generation do not require subsidies from the younger generation: we contributed amply to our pensions, and saved to buy our houses."

You're completely delusional. Look at where the government is spending Support for Mortgage Interest payments (this is the taxpayer stepping in to pay someone's mortgage if they can't afford to pay it themselves). 53% of SMI payments go to those over the age of 60. 10% goes to those under the age of 40. This is nothing but baby boomer greed -- forcing tax payers to fund their lifestyle because they've bought a house they can't afford and are unwilling to sell.

Data here: http://www.dwp.gov.uk/docs/support-for-mortgage-interest.pdf

I checked the PDF (Page 7) and it's true, how on earth are so many old people relying on the tax payer, you have to ask that considering everything has gone there way recently, how have they not paid off their mortgages? I'm fuming! :angry: :angry:

Over half of Support for Mortgage Interest customers are over 60 (53%) and only around 10% are under the age of 40. Support for Mortgage Interest in the lowest age band, 18 to 24, is negligible.

As you'd imagine the amounts paid to the handful of under 40's is higher, but how can 5x more old people be reliant on government hand outs, i feel sick! :angry:

Share this post


Link to post
Share on other sites

Is there any consideration of equity people who cant afford the mortgage have, or for all we know we could be paying the first £400k of Alan Sugars mortgage (along with his winter fuel payments and all the other universal benefits)

Share this post


Link to post
Share on other sites

as I stated on a previous topic

this bounty is [paid for ever not just the two years that the unfortunately unemployed are supported for. I think if you are on pension credit (even if you enjoy a house worth 300K or more) you get your mortgage paid for you (interest only admittedly) as well as council tax credit etc. I makes me mad and I am sure those who work for a living find it even more infuriating.

It is my tax money too .

Share this post


Link to post
Share on other sites

Here we go again, this is what i get from every old (50+) person.

Younger generations should understand things have always been difficult unless you were very fortunate to have had rich parents to help you get started.

things were always hard they tell you. You show them the stats, they still refuse to believe that in relation to wages houses are massively overpriced and unaffordable. Its like talking to a brick wall,

To them, £100k of debt is no different to £1million of debt, theyre just numbers.

Share this post


Link to post
Share on other sites

I posted that on the Telegraph after reading another post on HPC about the SMI figures.

I didn't even mention the fact that SMI is paid on the assumption that a person's mortgage has an interest rate of 6%, when the actual average interest rate is somewhere around 3%. It's all just a big scam, really.

Share this post


Link to post
Share on other sites

I posted that on the Telegraph after reading another post on HPC about the SMI figures.

I didn't even mention the fact that SMI is paid on the assumption that a person's mortgage has an interest rate of 6%, when the actual average interest rate is somewhere around 3%. It's all just a big scam, really.

Looking on the bright side, if I got laid off, between tax credits, SMI, and various other benefits I'm not sure we'd be a lot worse off..

Share this post


Link to post
Share on other sites

Below is a comment from the following article ...

http://blogs.telegraph.co.uk/finance/ianmcowie/100007530/how-house-prices-and-debts-are-building-ugly-tensions-between-parents-and-their-children/

I checked the PDF (Page 7) and it's true, how on earth are so many old people relying on the tax payer, you have to ask that considering everything has gone there way recently, how have they not paid off their mortgages? I'm fuming! :angry: :angry:

As you'd imagine the amounts paid to the handful of under 40's is higher, but how can 5x more old people be reliant on government hand outs, i feel sick! :angry:

The money allocated is not quite so disproportionate. OVer 60s get 36% of the money, over 40s get 82% of the money. As the average FTB age (without help) is 37, it is extremely disproportionate in terms of the have-houses and the have nots. 82% of the money goes to the generation that have-houses, only 18% of the money goes to priced-out generation.

Share this post


Link to post
Share on other sites

"People of my generation do not require subsidies from the younger generation: we contributed amply to our pensions, and saved to buy our houses."

They did that by dumping all their liabilities on the next generation.

Share this post


Link to post
Share on other sites

"People of my generation do not require subsidies from the younger generation: we contributed amply to our pensions, and saved to buy our houses."

They did that by dumping all their liabilities on the next generation.

As a 60 year old myself I may stop coming on these boards. Not because I disagree with the younger posters, but because I am ashamed of my generation sometimes. Not always, but certainly in relation to this subject.

OK I know that I could post any kind of crap but I have honestly, due to bad timing of a divorce etc, NEVER made a friggin penny on property. It certainly never funded any "retirement" which I can't afford anyway. Luckily I was blessed with enough intelligence to realise that the private pensions were a scam (early doors) and invested in ME (well my business now in the US thankfully). Still no excuse for my generation per se.

BTW I remember watching "Look Back In Anger" so maybe it's always been there to some degree.

Share this post


Link to post
Share on other sites

As a 60 year old myself I may stop coming on these boards. Not because I disagree with the younger posters, but because I am ashamed of my generation sometimes. Not always, but certainly in relation to this subject.

OK I know that I could post any kind of crap but I have honestly, due to bad timing of a divorce etc, NEVER made a friggin penny on property. It certainly never funded any "retirement" which I can't afford anyway. Luckily I was blessed with enough intelligence to realise that the private pensions were a scam (early doors) and invested in ME (well my business now in the US thankfully). Still no excuse for my generation per se.

BTW I remember watching "Look Back In Anger" so maybe it's always been there to some degree.

Thanks, the sentiment is appreciated. Don't leave though, it's good to get the perspective of older posters, especially ones who can see that it is different for us young folk now!

Share this post


Link to post
Share on other sites

It's pretty sad. Who is stoking this inter generational fire and what is the agenda.

Isn't this everyones fault. We, the young, didn't have to allow house prices to inflate as they did. In fact we bought BTL like there was no tomorrow. If we stopped buying and simply all said, this is daft its too expensive then there would be no problem. But we jump over the cliff like Lemmings (except Lemmings don't actually do that and probably have more sense than us).

Let's put the anger and frustration aside, simply refuse to pay over inflated prices and let things settle back to a more normal place.

If paying over 60's mortgage interest annoys you then write to your MP instead of 'just' posting here. If enough people do that and make the valid comment that people should first be required to downsize and demonstrate reasonableness in requesting help, the same for paying housing benefits, then it will stand a fighting chance of making the world a fairer place. If you haven't written to your MP and no. 10 then why just post a moan here?

I'm guilty for this and plan to turn over a new leaf.

Share this post


Link to post
Share on other sites

As a 60 year old myself I may stop coming on these boards. Not because I disagree with the younger posters, but because I am ashamed of my generation sometimes. Not always, but certainly in relation to this subject.

OK I know that I could post any kind of crap but I have honestly, due to bad timing of a divorce etc, NEVER made a friggin penny on property. It certainly never funded any "retirement" which I can't afford anyway. Luckily I was blessed with enough intelligence to realise that the private pensions were a scam (early doors) and invested in ME (well my business now in the US thankfully). Still no excuse for my generation per se.

BTW I remember watching "Look Back In Anger" so maybe it's always been there to some degree.

There's nothing to be ashamed of I think. Facing the truth and not being delusional about it is the key IMO.

Share this post


Link to post
Share on other sites

Below is a comment from the following article ...

http://blogs.telegraph.co.uk/finance/ianmcowie/100007530/how-house-prices-and-debts-are-building-ugly-tensions-between-parents-and-their-children/

I checked the PDF (Page 7) and it's true, how on earth are so many old people relying on the tax payer, you have to ask that considering everything has gone there way recently, how have they not paid off their mortgages? I'm fuming! :angry: :angry:

As you'd imagine the amounts paid to the handful of under 40's is higher, but how can 5x more old people be reliant on government hand outs, i feel sick! :angry:

The title of this OP is misleading

What the DWP article states is that

Over half of Support for Mortgage Interest customers are over 60 (53%) and only around 10% are under the age of 40.

(e that 53% of the people claiming are over 60.)

It does not necessarily follow that they get 53% of the total SMI payments since the average amounts they are receiving are actually far lower than those under 60

In fact 39% of the claimants are pensioners over 65 receiving an average of £27 a week (approx £108 per month) which is not a huge sum when compared to the amounts of housing benefit being paid to many younger people in rented accommodation

This fact can clearly be seen from Table 8 in the DWP document but then no one is going to let that inconvenient fact spoil their ageist rant.

Share this post


Link to post
Share on other sites

How in gods name do you end up with an outstanding mortgage at 60+? :blink::o

Talk about sub prime, these guys and gals must be sub-sub-sub prime. I'll bet the lenders double check the life insurance is in order now that house prices are falling...

Share this post


Link to post
Share on other sites

The title of this OP is misleading

What the DWP article states is that

(e that 53% of the people claiming are over 60.)

It does not necessarily follow that they get 53% of the total SMI payments since the average amounts they are receiving are actually far lower than those under 60

In fact 39% of the claimants are pensioners over 65 receiving an average of £27 a week (approx £108 per month) which is not a huge sum when compared to the amounts of housing benefit being paid to many younger people in rented accommodation

This fact can clearly be seen from Table 8 in the DWP document but then no one is going to let that inconvenient fact spoil their ageist rant.

Firstly, please see my post 1h20m before yours (#7) where I clearly outline what you repeat regarding the allocation of value. Secondly, many younger people in rented accomdation do not have wodges of unearned housing equity, whilst those that do are prevented from having to liquidate, one radon why housing costs are high and why housing benefit is needed in the first place. It's simply reallocating taxpayers money to the asset-rich-cash-poor from the asset-poor-cash-poor.

Share this post


Link to post
Share on other sites

I imagine that there are quite a few people who are milking this scheme.

Sure - MEWing will leave you in debt.

But I'm sure that those recieving this money have got pots stashed away somewhere - be in gold bullion, shares, savings.

or they could just sell the house and downsize.

Share this post


Link to post
Share on other sites

or they could just sell the house and downsize.

The scheme should force them to do that if they have surplus bedrooms, i.e. a married couple with a 3 bed house should not be eligible for mortgage support under such schemes until they've moved into a 1 or 2 bed flat.

Share this post


Link to post
Share on other sites

As I understand it, you can MEW at 64 and 11 months and a month later when you retire the government picks up the tab for the interest?

Though to be fair, these old folks through no fault of their own MEWED £100k from their houses and spent it on SAGA cruises. It wasn't their fault, the advertising was SOOO effective. Besides, they've worked hard all their life, they deserve a comfy retirement, even if it mean s their grandkids have to live in hovels to fund it.

Edited by RufflesTheGuineaPig

Share this post


Link to post
Share on other sites

As I understand it, you can MEW at 64 and 11 months and a month later when you retire the government picks up the tab for the interest?

Though to be fair, these old folks through no fault of their own MEWED £100k from their houses and spent it on SAGA cruises. It wasn't their fault, the advertising was SOOO effective. Besides, they've worked hard all their life, they deserve a comfy retirement, even if it mean s their grandkids have to live in hovels to fund it.

From the horse's mouth:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

There is no limit to how long you can get SMI if you are getting:

Income Support

income-related Employment and Support Allowance

Pension Credit

But

From 1 October 2010 the standard interest rate will be set at a level equal to the Bank of Englands published monthly average mortgage interest rate. The starting rate that will apply from 1 October 2010 will be 3.63 per cent (the rate published by the Bank of England on 31 August 2010).

Also:

most claims for SMI came under new rules including:

waiting 13 weeks from the date you claim before you get SMI (this is known as a waiting period and was previously 39 or 26 weeks)

Edited by deflation

Share this post


Link to post
Share on other sites

How in gods name do you end up with an outstanding mortgage at 60+? :blink::o

OK my parents are in this position, my dad worked in the shipyards in the NE of England which closed down so had to move south swapping a house that sold for 30,000 for one that cost 65,000 this is 1988ish.

They then had an endowment policy which was supposed to pay off the mortgage but as you may know many were mis sold them and they lost a fortune, this is where the problems really start, so after remortgaging as they couldnt sell, in 1992ish they moved houses to a smaller place, to move costs 10k or so.

Then after a couple of years here, the company he worked for shut down, so in 1998ish he managed to get another job close to London, in 2000ish after renting for 2 yrs they sold this house and moved again it cost 1000s, for a similar 3 bed terrace it cost a lot more so a bigger mortgage came with it.

Then again after 3yrs here they had to sell up north and move for work again making nothing on their property.

Hence after a lifetimes hard work hes 65 and has just arranged to stay on at his job for another 2 years.

Does he deserve to get his mortgage interest paid unitl they day he die, well thats upto you to decide, id say so though.

PS He realises in hindsight he'd have been better off getting a council house in NE England in 1988 and poncing off the state but he preferred to work so had to move and at the time this area wasnt exactly prosperous for 3 teenage kids.

Edited by BuyInOxford

Share this post


Link to post
Share on other sites

this bounty is [paid for ever not just the two years that the unfortunately unemployed are supported for. I think if you are on pension credit (even if you enjoy a house worth 300K or more) you get your mortgage paid for you (interest only admittedly)

Incorrect, up to October 2010 all claimaints are receiving payments as if the mortgage was at 6%.. even if the mortgage is only 2%.. the difference is paid to the lender as an overpayment and pays off the capital. Over 92% of claimants are receiving capital repayments in addition to the interest

After October 2010 the rate is paid at 3%, which means that "only" 50% of claimaints are receiving capital repayments.

Still utterly outrageous and nothing short of criminal

Edited by exiges

Share this post


Link to post
Share on other sites

Does he deserve to get his mortgage interest paid unitl they day he die, well thats upto you to decide, id say so though.

No. Sounds like hard luck and you have my sympathy, but your Dad should be flogging his house when he stops work and either buying something he can own outright, or renting, with government support if need be. The UK taxpayer wouldn't have been getting a share in any profits he made (unless his estate was over the IT threshold, which sounds unlikely from your description) so I can't see why it should be bankrolling unsustainable mortgagees.

Share this post


Link to post
Share on other sites

There is a delusion, that our housing stock value, if kept high, will continue to generate wealth. Perhaps the notion it will continue to rise, if more people borrow against it. Foolish ponzi Japanese economics.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.