Jump to content
House Price Crash Forum
Sign in to follow this  
Bear Goggles

Ukip Manifesto: Inheritable Mortgages

Recommended Posts

One for the HCP Kippers.

https://twitter.com/fleetstreetfox/status/588296364301352960

UKIP will change the law to allow mortgages to become inheritable, as they are in other countries. This will allow lenders to resume lending to older borrowers.

...And allow young people to achieve debt serfdom.

Obviously there's a difference between having the option to inherit vs being obliged to inherit a mortgage, but I don't really see how it changes lenders' risk calculations unless it's a legally forced inheritance.

Anyway - general nonsense probably not worth spending too long thinking about - UKIP obviously haven't.

Share this post


Link to post
Share on other sites

They're too busy spamming threads about the Greens being fruit loops.

Pot, kettle and black.

You'd have to change your name to 50year mortgage 8itch.

Share this post


Link to post
Share on other sites

Nothing wrong with this.

It just means if the parents die before the mortgage is paid off, the children have the choice whether to sell the house to settle the outstanding mortgage, or carry on making the payments and keep the house.

If the house is in negative equity and the parents leave no other assets, then the house becomes the property of the mortgage lender and the rest of the debt dies with the borrower.

Of course, being a UKIP policy, it'll be twisted and distorted by the left into a straw man they can knock down.

Share this post


Link to post
Share on other sites

Great so the property would cost say 100k with a 25 year mortgage but they could charge 200k for the same property with a 50 year mortgage (not accurate maths but you get the point). The monthly payment is the same and you will own the property at the end of the term.

Fair point.. I guess it depends whether they also allow higher loan to income ratios at the same time.

Share this post


Link to post
Share on other sites

The last thing this country needs is more mortgage debt. The option of having a 50 year mortgage would very quickly become a requirement to have a 50 year mortgage. Maybe UKIP's goals are noble enough but this is going to be corrupted into another horror pretty quickly.

Edited by EUBanana

Share this post


Link to post
Share on other sites

Great so the property would cost say 100k with a 25 year mortgage but they could charge 200k for the same property with a 50 year mortgage (not accurate maths but you get the point). The monthly payment is the same and you will own the property at the end of the term.

Surely that would only work if you could enforce the mortgage on the heirs? Which is not in the UKIP manifesto as far as I can see.

FWIW I don't think this is a brilliant idea but it is not a bad one either.

Share this post


Link to post
Share on other sites

Surely that would only work if you could enforce the mortgage on the heirs? Which is not in the UKIP manifesto as far as I can see.

FWIW I don't think this is a brilliant idea but it is not a bad one either.

I don't think you could have "inheritable" mortgages. The only debts that are enforceable after an individual's death are joint debts, where the name(s) of a survivor/survivors is/are on the loan agreement. So the inheritor(s) would have had to have taken out the mortgage jointly, or guaranteed it, right from the start.

Share this post


Link to post
Share on other sites

I like it when inheritable mortgages are discussed. The market usually crashes.

They were discussed in 1989 too. Timber!

Share this post


Link to post
Share on other sites

What currently happens if someone dies with an unpaid mortgage?

unsecured debt dies with you......uninsured secured debt that has a value is transferred back to the lender any surplus is distributed in accordance with the law of inheritance.

Share this post


Link to post
Share on other sites

What currently happens if someone dies with an unpaid mortgage?

Many mortgage providers ask for people to take out life insurance but I don't think it is 100% enforced. However I have life insurance for my mortgage.

Share this post


Link to post
Share on other sites

Yep, as others have said not enforceable unless the inheritor agrees to it at the outset. Seems unlikely to have much impact. Kippers probably just want to be seen as 'doing something'.

Share this post


Link to post
Share on other sites

Nothing wrong with this.

It just means if the parents die before the mortgage is paid off, the children have the choice whether to sell the house to settle the outstanding mortgage, or carry on making the payments and keep the house.

If the house is in negative equity and the parents leave no other assets, then the house becomes the property of the mortgage lender and the rest of the debt dies with the borrower.

Of course, being a UKIP policy, it'll be twisted and distorted by the left into a straw man they can knock down.

Riiiiight.

So this encourages mortgage lenders to give older people larger mortgages how?

It's basically the same as we have now, except... erm... the inheritors get to choose to pay the existing mortgage rather than decide whether to take out their own mortgage if they don't want to sell the asset? That doesn't sound like it has any point to it. Nope. It's a UKIP brain-fart, I've obviously spent more time thinking about this than the UKIP policy writers already.

It's fun this election promises malarky, isn't it?

Share this post


Link to post
Share on other sites

Great so the property would cost say 100k with a 25 year mortgage but they could charge 200k for the same property with a 50 year mortgage (not accurate maths but you get the point). The monthly payment is the same and you will own the property at the end of the term.

That's my concern too. Nothing to do with who proposed it. If it has the potential to increase prices, which this surely does because people will be able to borrow for longer, it's a problem.

Share this post


Link to post
Share on other sites

Great so the property would cost say 100k with a 25 year mortgage but they could charge 200k for the same property with a 50 year mortgage (not accurate maths but you get the point). The monthly payment is the same and you will own the property at the end of the term.

An interest only mortgage is infinite so it's a moot point.

Share this post


Link to post
Share on other sites
Peter Gibson
6 hours ago
At a time when the voting public is desperately looking for a clear and decisive political direction for the country to follow, this pointless and immature sniping of the images in a party's election manifesto is a complete waste of time. It is neither amusing nor helpful in anyway whatsoever and whilst I am still undecided as to vote, I am now much clearer on where not to waste my time looking for educated and informed analysis of this countries political goings on. I am to say the least appalled at the Independent for producing such infantile tripe.

This newspaper story is infantile tripe as one of the comments points to. Looking at pictures instead of policies. Is this a newspaper of a comic.

And oh climate change is not real, anyone with half a brain knows that.

Share this post


Link to post
Share on other sites

It seems a pretty pointless announcement...don't think it'll make much difference to HPI unless its guaranteed at the point of the mortgage being taken out that more than one generation will be on the hook.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   90 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

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.