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Richard

Talk Of Multi-Generational Mortgages Re-Emerges

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Extend the debt slavery to the next generation.

In the 21st century and in the "developed" country, the dream is having your roof over your head.Miracle of technological advance is not anymore making a computer chip or flying to other planets or advances in medicine.The miracle is "buying" an old slum where coal miners and dockyard workers lived hundreds of years ago.?

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Around the mid 1980's one of my lodgers who worked for the Nationwide Anglia told me these were being considered. What do you think happened next?

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A government "source" (why does it have to be a "source" - it is not exactly a leak) says that 40 year mortgages are the norm in Japan.

Absolute tosh. This is a half-remembered factoid from the bubble years. Property prices in Japan are cheaper or the same as the UK. This has been helped by a 50% drpp in land values over the past 20 years.

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A mortgage where you pay ineterest but never pay off the capital in your lifetime. Is that not an INTEREST ONLY mortgage? This is just a tactic to re-introduce IO mortgages for the mainstream. There will be Government Deposit 20%+Shared Equity+IO terms in order to make deals affordable. and still they don't realise that prices are just too high. What will it take?

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A mortgage where you pay ineterest but never pay off the capital in your lifetime. Is that not an INTEREST ONLY mortgage? This is just a tactic to re-introduce IO mortgages for the mainstream. There will be Government Deposit 20%+Shared Equity+IO terms in order to make deals affordable. and still they don't realise that prices are just too high. What will it take?

That's the explanation. We're already bumping against the ceiling of affordability again thanks to FLS and HtB. The re-introduction of i/o mortgages would give the market a bit more headroom. Govt subsidised i/o mortgages even more so!

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A government "source" (why does it have to be a "source" - it is not exactly a leak) says that 40 year mortgages are the norm in Japan.

Absolute tosh. This is a half-remembered factoid from the bubble years. Property prices in Japan are cheaper or the same as the UK. This has been helped by a 50% drpp in land values over the past 20 years.

Do you know how this played out in Japan at the time?

Did these kinds of mortgage terms actually contribute to the crash in some way or did they just drop out of use because of the crash?

Was inheritance tax at the time comparable to the UK now and how did this affect the inheritance of the mortgage?

Did any of these multi-generational mortgages actually make it to the second generation or did the kids end up defaulting because of the crash?

If these kinds of mortgage terms came in over here I'd be inclined to call a market top in the very near future...

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Lots of talk about this in 2006/7...... it didn't come to anything.

I remember someone mentioning this idea to me in about 2004.

I suppose it's one way to make mortgages more 'affordable', hell, make them 100 years, 1000 years!

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I remember someone mentioning this idea to me in about 2004.

I suppose it's one way to make mortgages more 'affordable', hell, make them 100 years, 1000 years!

No deposit to pay, interest free for 12 months. ;)

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I genuinely don't understand how these are meant to work.

If my parents stupidly take out a 50 year mortgage on their house and then die 10 years later, how can the outstanding debt be passed on to me? I have no relationship with any bank or debt-issuing body. How come I can't just walk away and ignore everything?

Or am I brainwashed into signing on the original mortgage papers in the first place?

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