Bear Goggles Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
Agentimmo Posted April 15, 2015 Share Posted April 15, 2015 I hear this type of deal is "Big In Japan"......... Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted April 15, 2015 Share Posted April 15, 2015 One for the HCP Kippers.They're too busy spamming threads about the Greens being fruit loops. Pot, kettle and black. Quote Link to comment Share on other sites More sharing options...
Errol Posted April 15, 2015 Share Posted April 15, 2015 People could take on massive mortgages if they had these lol. £1million+ would become the norm. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted April 15, 2015 Share Posted April 15, 2015 Ponzi extension mechanism to admit 40 and 50yr mortgage terms. Quote Link to comment Share on other sites More sharing options...
R K Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
ManVsRecession Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
“Nasty Piece of work” Posted April 15, 2015 Share Posted April 15, 2015 .....and they eat babies too. I suggest we keep the usual scum. Quote Link to comment Share on other sites More sharing options...
ManVsRecession Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
EUBanana Posted April 15, 2015 Share Posted April 15, 2015 (edited) 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 April 15, 2015 by EUBanana Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
tyres Posted April 15, 2015 Share Posted April 15, 2015 most ridiculous pictures from the Ukip manifesto Roger Helmer there, who tried to argue the solar eclipse was proof climate change wasn’t real. Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted April 15, 2015 Share Posted April 15, 2015 I like it when inheritable mortgages are discussed. The market usually crashes. They were discussed in 1989 too. Timber! Quote Link to comment Share on other sites More sharing options...
Riedquat Posted April 15, 2015 Share Posted April 15, 2015 What currently happens if someone dies with an unpaid mortgage? Quote Link to comment Share on other sites More sharing options...
winkie Posted April 15, 2015 Share Posted April 15, 2015 Desperate Times = Desperate Measures. Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted April 15, 2015 Share Posted April 15, 2015 What currently happens if someone dies with an unpaid mortgage? The house gets sold to pay the debt. Quote Link to comment Share on other sites More sharing options...
winkie Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
Bear Goggles Posted April 15, 2015 Author Share Posted April 15, 2015 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? Quote Link to comment Share on other sites More sharing options...
Bugger BTL Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
bear.getting.old Posted April 15, 2015 Share Posted April 15, 2015 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. most ridiculous pictures from the Ukip manifesto Roger Helmer there, who tried to argue the solar eclipse was proof climate change wasn’t real. 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. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted April 15, 2015 Share Posted April 15, 2015 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. Quote Link to comment Share on other sites More sharing options...
robo1968 Posted April 15, 2015 Share Posted April 15, 2015 (edited) An interest only mortgage is infinite so it's a moot point. Surely there's not much in it, Interest makes up most of the payment anyway The removal of IHT might make a partially mortgaged larger house easier to deal with I suppose To be honest I was expecting more lefty criticism. Edited April 16, 2015 by robo1968 Quote Link to comment Share on other sites More sharing options...
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