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equitystasher

Halifax Offering 8 X Mortgage To A 25 Year Old Over 65 Years!

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My Fiancé came home today to tell me about a close work colleague who has gone to the banks for a mortgage in principle so he can buy a house in Surrey.

He is 25 years old and has a total gross income including overtime of £32,000 a year and has a 5% deposit

He is determined to buy a house against the advice of my Fiancé.

We both reckoned at best he would be offered £120,000 mortgage due to MMR.

How wrong we were!!

He has been offered £250,000 over 65 years with the Halifax and he wants to take it despite the sound advice from my fiancé

I thought sub prime lending had finished in 2008 but how wrong was I! This all makes sense why house prices are still at ridiculous levels. He is not the only one who has been forwarded such a large amount over a ridiculous term. Two others we know have done the same.

It makes me angry that we have to bid against such stupid people who are given the rope to hang us all from the zombie banks.

Next intergenerational mortgages like Japan?

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This explains their 2% rise.

If this is true the people involved should be locked up for, let's say, 65 years.

I guess this can happen if you give the same bankers who collapsed their bank in 2007 unlimited access to free tax payers backed money and 20% deposit guarantees.

If this is true, contact your or Mp and local paper and demand they do something about this fraud.

Edited by TheCountOfNowhere

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He has been offered £250,000 over 65 years with the Halifax and he wants to take it despite the sound advice from my fiancé

A contrary view: I bought a (small) house when I was 22... I decided to buy it (with a 20% deposit - 5% mine, 15% family 'gift') because buying it made sense to me. I had a 5-to-10 year plan for full repayment.

The mortgage lenders asked what I wanted... I was quite clear... I wanted minimal expense to service the mortgage for as long as possible. My choice was to pay for the house - the mortgage was just the question of how much I'd pay for the advance of funds, and how constrained I'd be about repayment.

If I were 25, I'd ask for a 65 year mortgage - if it cost no more than a shorter one. I'd ask for zero percent, and hope for something low. I'd ask for the largest in-principle loan on offer - and then start shopping. By "shopping" I do *NOT* mean trying to spend everything I can borrow... I'd be looking for value... At 22, the first step in trying to look for value is to establish your credit. My hat goes off to him - I hope he is as wise in spending as he has been in negotiating this credit.

I feel quite sure that he understands that he doesn't want to still be a wage-slave when he is 87. The question that matters is all about realistic expectations.

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A fixed for the term negative interest rate 70 year mortgage would be fine for me - probably coming to a bank near you soon! - share the hpi...

The abstract debt slavery one now has to submit to, to secure mere dwelling space with a degree of security - more so a right to compensation if it be decided you should be moved, is quite frankly, bonkers.

People used to live in homes, mostly council rented, but a lot would want to aspire to home ownership, and it was achievable. Now there are some messed up living arrangements repeated in every town and city. People who should be participating in the various sectors of the housing market are excluded and cannot access housing, the sectors themselves aren't big enough to provide basic housing to all who want it. The private sector can thus get away with providing worse than basic housing at a premium due to artificial scarcity.

Illegal drugs often have problems with purity and quality, and they command a premium price relative to the cost of their production.

They do not differ to housing.

Housing in the UK suffers from problems of purity (actually existing) and quality (i.e. poor enough to be condemned unfit for human habitation of a family 100 years ago, now subdivided and let as a HMO), it also commands a premium price relative to it's cost of production, because it costs much more for permission to build than it does to build.

Much like after the wars, there is plenty of room for a thriving black market in housing. - In periodical recession resulting from land price speculation, construction workers, should't stop building as they are currently encouraged to, they should just start building differently and without planning permission.

Chronic Housing Users (CHU) suffer from all the problems chronic drug users do, and when you use housing daily, you're not much different to a Problem Drug User (PDU) requiring a daily fix. If you use housing daily it could ruin your life, your relationships, it will cause no end of financial problems, you might not be able to afford it, but somehow you will beg, borrow and steal to pay for your chronic housing use - or if you can't, it is cold turkey - you're on the streets.and will have to do without a housing 'fix'.

I'm not saying the UK housing market is 'on drugs', it is drugs, so to speak, it functions just like them, it is only legal to have prescribed housing (inherit something already built). Having a decent house in this country might as well be illegal for those who do not inherit housing (prescribed housing), and punished with confinement to HMO housing - Oh wait...it practically is.

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A 40 year mortgage would take me to the current pension age of - 67, I could probably extend the mortgage if the pension age increased, to be certain to condemn your entire working life to debt slavery!

Edited by Self Employed Youth

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A contrary view: I bought a (small) house when I was 22... I decided to buy it (with a 20% deposit - 5% mine, 15% family 'gift') because buying it made sense to me. I had a 5-to-10 year plan for full repayment.

The mortgage lenders asked what I wanted... I was quite clear... I wanted minimal expense to service the mortgage for as long as possible. My choice was to pay for the house - the mortgage was just the question of how much I'd pay for the advance of funds, and how constrained I'd be about repayment.

If I were 25, I'd ask for a 65 year mortgage - if it cost no more than a shorter one. I'd ask for zero percent, and hope for something low. I'd ask for the largest in-principle loan on offer - and then start shopping. By "shopping" I do *NOT* mean trying to spend everything I can borrow... I'd be looking for value... At 22, the first step in trying to look for value is to establish your credit. My hat goes off to him - I hope he is as wise in spending as he has been in negotiating this credit.

I feel quite sure that he understands that he doesn't want to still be a wage-slave when he is 87. The question that matters is all about realistic expectations.

contrary view, the is the house price crash website. We don't need people supporting the action of fraudulent bankers.

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Call BS on the original thread.

Any mortgage over 20 years relies on the mortgagee not being able to do the maths, which shows you are getting reamed by the bank.

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65 years? Jesus wept!

Halifax are probably counting on their mortgagees working themselves to near death. Or having an excellent private pension to pay the mortgage post retirement.

Makes me think that renting's not such a bad option after all.

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I can't see it being 40 years, I don't think a single income of 32k would pass the MMR stress test.

If there is the tiniest possibility is it true, well a 65 year term is obviously the loophole around MMR monthly affordability tests. Maybe its the new 'interest only' because surely for the first 30 years you'd be paying virtually nothing off the capital?

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A contrary view: I bought a (small) house when I was 22... I decided to buy it (with a 20% deposit - 5% mine, 15% family 'gift') because buying it made sense to me. I had a 5-to-10 year plan for full repayment.

The mortgage lenders asked what I wanted... I was quite clear... I wanted minimal expense to service the mortgage for as long as possible. My choice was to pay for the house - the mortgage was just the question of how much I'd pay for the advance of funds, and how constrained I'd be about repayment.

If I were 25, I'd ask for a 65 year mortgage - if it cost no more than a shorter one. I'd ask for zero percent, and hope for something low. I'd ask for the largest in-principle loan on offer - and then start shopping. By "shopping" I do *NOT* mean trying to spend everything I can borrow... I'd be looking for value... At 22, the first step in trying to look for value is to establish your credit. My hat goes off to him - I hope he is as wise in spending as he has been in negotiating this credit.

I feel quite sure that he understands that he doesn't want to still be a wage-slave when he is 87. The question that matters is all about realistic expectations.

Care to arrange those random facts in a logical order?

Opportunity cost? Risk? Nope. Bomad to the rescue. Clearly.

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