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Property Apartheid: How Falling House Prices Divide The Generations

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It's a fairly balanced article. What's interesting is that the title of the piece says the opposite of what's in the article: that the property boom created an apartheid.

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Love the lack of joined up thinking in the comments by arewejusthacks

Prices will mean those without mum and dad need to go for longer term mortgages.

I have calculated monthly repayments based on £100k morgage and 5% interest (I would imagine 5% is a fair average mortgage rate - especially over the posters unthinkable 50 year mortgage term)

10 yr 1079.2 pm

20 yr 668.68 pm

25yr 591.27 pm

30yr 542.09 pm

40yr 485.65 pm

Hmmm, the effect of merely paying interest and very little capital in the early part of the mortgage doesnt appeal to me. I stopped the calculations at 40 years as the pattern was already clear and tellingly the website i am using refuses to calculate anything for a longer term than 40 years.

I wonder what kind of special person would happily extend their morgage term by 60% in order to reduce their monthly payment by 17%. This of course ignores the fact that you are exposed to a greater number of economic boom and busts and the varying interest rates that go with them.

This idea is for nutters only. ******ing nutters. I am not reg'd with the telegraph. Would someone mind passing on my comments please?

Edited by Caveat Mortgagor

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Love the lack of joined up thinking in the comments by arewejusthacks

Prices will mean those without mum and dad need to go for longer term mortgages.

I have calculated monthly repayments based on £100k morgage and 5% interest (I would imagine 5% is a fair average mortgage rate - especially over the posters unthinkable 50 year mortgage term)

10 yr 1079.2 pm

20 yr 668.68 pm

25yr 591.27 pm

30yr 542.09 pm

40yr 485.65 pm

Hmmm, the effect of merely paying interest and very little capital in the early part of the mortgage doesnt appeal to me. I stopped the calculations at 40 years as the pattern was already clear and tellingly the website i am using refuses to calculate anything for a longer term than 40 years.

I wonder what kind of special person would happily extend their morgage term by 60% in order to reduce their monthly payment by 17%. This of course ignores the fact that you are exposed to a greater number of economic boom and busts and the varying interest rates that go with them.

This idea is for nutters only. ******ing nutters. I am not reg'd with the telegraph. Would someone mind passing on my comments please?

As you may or may not have worked out. An interest only mortgage on 100k would be 416.66 pm. That would go in at infinity years at the bottom of your list. That is the lowest limit, at 70% of the 'typical' mortgage term. Which means being able to spend 40% more on 'buying' a house by never actually buying it. However people have already done this and I'm pretty sure prices have risen accordingly.

So yes, nutters...

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I do get slightly offended by the use of the word of something so literally heinous as apartheid to describe something that’s undoubtedly unjust but on a far smaller scale. I’ve even seen it chucked around in the public sector pensions debate.

Not a bad little article though TBH, all in all. Balanced.

Edited by the flying pig

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  • 312 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%



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