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TheEmperorHasNoClothes

What Would The World Be Like Without ... Mortgages?

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I'd like to hear peoples comment on the subject:

What would the world be like without ... MORTGAGES?

Imagine that no-one could borrow money secured on a house. Then you'd have to save hard to afford one. So to buy a £200000 house, with say £200 spare cash per month it'd take a couple 42 years to afford a house.

However, with no mortgage the price may not be £200000. Maybe it'd be £20000 for an old one and £50000 for a new one (like car prices that depreciate with age). Then It would take just over 4 years to OWN a house!

But with no mortgages you'd be forced to rent in the meantime. Who would you rent from? What would they charge?

Come on, throw your thoughts in! ;)

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I'd like to hear peoples comment on the subject:

What would the world be like without ... MORTGAGES?

Imagine that no-one could borrow money secured on a house. Then you'd have to save hard to afford one. So to buy a £200000 house, with say £200 spare cash per month it'd take a couple 42 years to afford a house.

However, with no mortgage the price may not be £200000. Maybe it'd be £20000 for an old one and £50000 for a new one (like car prices that depreciate with age). Then It would take just over 4 years to OWN a house!

But with no mortgages you'd be forced to rent in the meantime. Who would you rent from? What would they charge?

Come on, throw your thoughts in! ;)

I believe this was the state of affairs in England for most of the 19th century.

after the agricultural revolution and the massive theft of land by the landed classes ( this common land is still largely unaccounted for and is the reason a proper land census has never been carried out ) millions were forced to move to the new towns and cities where they worked in factories and mills. here was born the great empire and the great backwardness of the working class which continues to this day. they lived in rented accommodation owned by the landed class and the new factory and mill owners.

they were slaves (they still are to an extent which explains why they vote Labour

) at work and at home.

the mortgage probably only became popular after the first world war and freed a lot of people from total slavery to those they worked for. they were still in debt to the bank but that was preferable to renting from the person you worked for or a landed toff.

the mortgage has definitely been a good thing. i wonder when the speculation started ?

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I'd like to hear peoples comment on the subject:

What would the world be like without ... MORTGAGES?

Imagine that no-one could borrow money secured on a house. Then you'd have to save hard to afford one. So to buy a £200000 house, with say £200 spare cash per month it'd take a couple 42 years to afford a house.

However, with no mortgage the price may not be £200000. Maybe it'd be £20000 for an old one and £50000 for a new one (like car prices that depreciate with age). Then It would take just over 4 years to OWN a house!

But with no mortgages you'd be forced to rent in the meantime. Who would you rent from? What would they charge?

Come on, throw your thoughts in! ;)

If there were no mortgages, someone would immediately invent them, or some equivalent financial instrument that did the same job without running foul of whatever factor was preventing mortgages from existing.

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If there were no mortgages, someone would immediately invent them, or some equivalent financial instrument that did the same job without running foul of whatever factor was preventing mortgages from existing.

You work in finance and I claim my five pounds!

frugalista

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Mortgages didn't exist 2 hundred years ago.

People who wanted to buy property would club together, and all work to build one house.

This meant that every year one person would get a house.

Person A would receive their house in year 1, and pay interest at 5% (set by the usury act) to person B who might have to wait 14 years to have their own place.

Every year a new house was built, and interest paid to those in the club who were still waiting for their property.

Hence the building society was born.

Edited by BandWagon

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  • 302 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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