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Piece on BBC news just now about the rise of 40 years mortgages. Tauted as "the only way many can afford homes" and also displayed figures on total interest payment being basically double on a 40 year over a 25 year. Cue financial advisor stating that "people should really try to move back to a 25 year mortgage when then can".

I kid you not my manager sat next to me in the work canteen just said to me "If I were you I would take a 40 year mortgage if it gets you on the ladder as you'll be locked into the house price rises".

Combined with family pressure to buy I am currently in total despair with the UK housing situation.

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I just posted a new post about this, but typically it needs to be reviewed by an adminstrator.... :/

The couple admitted they were taking a 'big risk' and were relying on house prices going up. Also forgetting interest rate changes...

This will all go horribly wrong when interest rates do go up, how mind bendingly stupid or perhaps deperate do people need to be. They surely know they will be defaulting on payments when interest rates go up.

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Tell your boss to mind his own f**king business.

Or start asking him about his own financial position, how much credit card DEBT do you own? how much mortgage DEBT? how often do you go into your overdraft gaffer?

UK Housing such a fcking pyramid scheme the early entrants are DESPERATE for new blood. ~Fck em.

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I just posted a new post about this, but typically it needs to be reviewed by an adminstrator.... :/

The couple admitted they were taking a 'big risk' and were relying on house prices going up. Also forgetting interest rate changes...

This will all go horribly wrong when interest rates do go up, how mind bendingly stupid or perhaps deperate do people need to be. They surely know they will be defaulting on payments when interest rates go up.

Ask for an upgrade , or post a bit of nonsense in off topic ,i think it`s a auto upgrade when you hit 100 post`s?

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Ask for an upgrade , or post a bit of nonsense in off topic ,i think it`s a auto upgrade when you hit 100 post`s?

Thanks, just 1 more post after this one. The badge is nearly earnt.

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Guest BillyNI

I just posted a new post about this, but typically it needs to be reviewed by an adminstrator.... :/

The couple admitted they were taking a 'big risk' and were relying on house prices going up. Also forgetting interest rate changes...

This will all go horribly wrong when interest rates do go up, how mind bendingly stupid or perhaps deperate do people need to be. They surely know they will be defaulting on payments when interest rates go up.

These guys are beyond fu*king stupid. This is so going to burn them and then they will complain the bank shouldn't have given them the loan.

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One more sign of the very top of the market.... Don't worry there is only 1 direction from here....

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I don't trust the government not to do all it can to intervene in the market. Nobody would have predicted zero interest rates for so long or the introduction of help to buy. Nobody would have predicted 40 year mortgages. Nobody would have predicted inter-generational mortgages.

But it has happened. If people are voluntarily entering themselves into such slavery what is the problem (from the government's perspective).

I suspect we are going to have low interest rates for decades to come. They will become the new norm because that's the only way avoid default. We are entering a new paradigm.

There needs to be a shock to the market. Brexit might not be enough on it's own. But if it then leads to other countries wanting their own referendums and then the break up of the EU, that might do the trick.

But other than that, on past experience do not underestimate the Tory boys..

I did see the news article on BBC news - the rhetoric of the young buyers does show how f*cked up many peoples' psyche is.

Owning a house is our new life's purpose at any cost.

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Piece on BBC news just now about the rise of 40 years mortgages. Tauted as "the only way many can afford homes" and also displayed figures on total interest payment being basically double on a 40 year over a 25 year. Cue financial advisor stating that "people should really try to move back to a 25 year mortgage when then can".

I kid you not my manager sat next to me in the work canteen just said to me "If I were you I would take a 40 year mortgage if it gets you on the ladder as you'll be locked into the house price rises".

Combined with family pressure to buy I am currently in total despair with the UK housing situation.

Added to the fact that people used to buy a first home in their early twenties....now more like early to late thirties.......to tie in with seventy year state retirement age, or could that be eighty year state retirement age?......either that or they are chancing on a forward projected high growth, services and consumerism, low interest rates and unemployment and growing prosperity for the next forty years....whoopee do. ;)

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I don't trust the government not to do all it can to intervene in the market. Nobody would have predicted zero interest rates for so long or the introduction of help to buy. Nobody would have predicted 40 year mortgages. Nobody would have predicted inter-generational mortgages.

But it has happened. If people are voluntarily entering themselves into such slavery what is the problem (from the government's perspective).

I suspect we are going to have low interest rates for decades to come. They will become the new norm because that's the only way avoid default. We are entering a new paradigm.

There needs to be a shock to the market. Brexit might not be enough on it's own. But if it then leads to other countries wanting their own referendums and then the break up of the EU, that might do the trick.

But other than that, on past experience do not underestimate the Tory boys..

I did see the news article on BBC news - the rhetoric of the young buyers does show how f*cked up many peoples' psyche is.

Owning a house is our new life's purpose at any cost.

As they were talking about 30 years in 2006 - it does seem a logical next step (no a wise one).

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Tell your boss to mind his own f**king business.

Or start asking him about his own financial position, how much credit card DEBT do you own? how much mortgage DEBT? how often do you go into your overdraft gaffer?

UK Housing such a fcking pyramid scheme the early entrants are DESPERATE for new blood. ~Fck em.

He is fully paid up member of the club, nice big house in SE and recently helped fund kids into flats. Very clever chap as well, so sad to see how deeply ingrained HPI forever is in our culture.

The VIs are desperate for new blood as you say.

If anyone reads many of my posts I probably look terribly bi-polar on the possibility of HPC. One minute I think the end is nigh the next total despair that the VIs will find a way to keep it going for another 10 years or more.

Where I work many of the Polish and Slovakian contract operators are buying up new build flats for 200k, stretching on double incomes working multiple jobs. They are happy to accept that standard of living. I fear that in London and the SE standards of living are permanently damaged.

My boss' comment was the last straw. I Skyped our global director this afternoon to talk about a transfer/promotion to the US, something that's been an option for a while. It seems like the only way out.

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Everyone on here has been saying that there needs to be an event to bring down prices, as the government won't do it alone. That event is only 3 weeks away.. Keep your chin up - until then at least.

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Forty is the last pull on the elastic, everyone always assumes they can stretch the elastic or blow the balloon up a litlle bit more and then what happens.

Agreed. And the difference it makes is just a hundred or two quid a month. All for an extended lifetime of debt for a pile of crap house. I agree with Venger et al that you know the risks when you sign up for those sort of mortgages and no one drags you in to sign. You have to own your decision.

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Everyone on here has been saying that there needs to be an event to bring down prices, as the government won't do it alone. That event is only 3 weeks away.. Keep your chin up - until then at least.

Thanks. This site does provide much needed moral support :)

Some positive signs ahead for a HPC e.g. shockingly poor US jobs data out today, UK manufacturing in recession, UK big retailers going down/struggling (BHS, M&S), multiple MSM sources printing HPC stories, Brexit, Italian bank bailouts, it's all looking like chickens are coming home to roost.

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Thanks. This site does provide much needed moral support :)

Some positive signs ahead for a HPC e.g. shockingly poor US jobs data out today, UK manufacturing in recession, UK big retailers going down/struggling (BHS, M&S), multiple MSM sources printing HPC stories, Brexit, Italian bank bailouts, it's all looking like chickens are coming home to roost.

Can't help but feel that either this is there to be blamed on Brixit or TPBT wanted to hold this off until after the referendum but failed. I just hope the general public don't buy the former - this shit is/was happening anyway, Brexit or not! Nothing has been fixed since 2008 people!

Edited by Northern Welsh Midlander

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Original article here: http://www.bbc.co.uk/news/business-36445065

No sympathy from me, they made their choices. They bought a £300K house in Cheadle.

There are cheaper houses in that areas, and cheaper areas than Cheadle too.

The article closes nicely with

"Homeowners like Katie and Chris in Cheadle could find that the 40-year deal is all they can ever afford and their mortgage becomes a millstone in later life".

I would say that is quite likely.

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