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lostinessex

Sharp Rise in 30 Year Mortgages

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From today's Guardian:

https://www.theguardian.com/money/2017/jan/13/sharp-rise-in-first-time-buyers-taking-mortgages-lasting-at-least-30-years

"With high house prices, student debts and a rise in the age at which couples have children, many people are tending to buy a home later and opt for a longer repayment term. "

Well that sounds like a trend that's going to end well! First time buyes increasingly buying later in their careers but taking our longer and longer mortgages - still I'm sure their pensions will cover the repayments. What am I saying, of course it will - their property is their pension!

 

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I know of three people recently signed up to 30 year mortgages. I asked one if they are worried about interest rates and their reply was "no, interest rates are really low". I left it at that.

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41 minutes ago, doomed said:

I know of three people recently signed up to 30 year mortgages. I asked one if they are worried about interest rates and their reply was "no, interest rates are really low". I left it at that.

Could be a 30 year fix ....

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3 hours ago, lostinessex said:

From today's Guardian:

https://www.theguardian.com/money/2017/jan/13/sharp-rise-in-first-time-buyers-taking-mortgages-lasting-at-least-30-years

"With high house prices, student debts and a rise in the age at which couples have children, many people are tending to buy a home later and opt for a longer repayment term. "

Well that sounds like a trend that's going to end well! First time buyes increasingly buying later in their careers but taking our longer and longer mortgages - still I'm sure their pensions will cover the repayments. What am I saying, of course it will - their property is their pension!

 

Laughable isn't it ..the market is built on smoke and mirrors

- Stupidly low interest rate s

- HTB loans  

- Parents gifting deposits from their HPI win

- 30 plus year mortgages 

 

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15 minutes ago, interestrateripoff said:

I took a 30 year mortgage out. Paid off in 10. However I'm guessing most aren't overpaying and just need the lower payments. 

This , I suspect its the only way to get them through MMR process 

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just another problem to worry about in the future...add it to the list.  the generation in positions of power and influence today really are going to go down in history.

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Banks successfully lobbied to have the 25 year maximum mortgage term removed from the Mortgage Market Review. So bankers can extend the mortgage term to lower initial payments, until the computer says "Yes".

Freetrader did a thread in 2013 

 

 

 

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4 hours ago, sPinwheel said:

Well we are all living longer. And now no-one is compelled to retire at a given age. 

And the banksters are happy to allow their valued customers to have mortgages at much older ages than previously......

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So, you bail out a bank, you print money and give it to them, they  then push up house prices to untenable levels and endebt people for 30+ years of their lives just to afford a basic shelter.

People really need to wake up to this madness.

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4 hours ago, sPinwheel said:

Well we are all living longer. And now no-one is compelled to retire at a given age. 

The boomoers lived longer. millennials wont be so lucky.

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5 hours ago, Nabby81 said:

Laughable isn't it ..the market is built on smoke and mirrors

- Stupidly low interest rate s

- HTB loans  

- Parents gifting deposits from their HPI win

- 30 plus year mortgages 

 

All funded by magic QE money.


To say this is criminal is the understatement of any generation.

 

I suspect the bankers have NO money to lend and the only way they can keep going is to steal from us all via the back door.

 

Where are the decent leaders who will stand up to these thieves ?

Edited by TheCountOfNowhere

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1 hour ago, Democorruptcy said:

Banks successfully lobbied to have the 25 year maximum mortgage term removed from the Mortgage Market Review. So bankers can extend the mortgage term to lower initial payments, until the computer says "Yes".

Freetrader did a thread in 2013 

 

Man alive, yes! I'd forgotten this.

What a masterpiece of evasion and deceit the MMR was. Enabling the very thing it was supposed to prevent. Orwell would have been proud.

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49 minutes ago, TheCountOfNowhere said:

FTBs need to start offering 50% of the asking prices and telling the bankers and sellers to stick it when they dont go for it.

If buyers went back to offering 3x main income plus 1x second income, for a maximum 25 years, they would get cheap houses again. Like they did in the late 90's when the average house cost 60k. If people are willing to borrow 4x+ joint income they get more expensive houses. That underpins capital gains for BTL etc. 

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12 minutes ago, Democorruptcy said:

If buyers went back to offering 3x main income plus 1x second income, for a maximum 25 years, they would get cheap houses again. Like they did in the late 90's when the average house cost 60k. If people are willing to borrow 4x+ joint income they get more expensive houses. That underpins capital gains for BTL etc. 

It goes much deeper than BTL which is a symptom rather than the principle cause which was steadily decreasing interest rates, ever slacker lending criteria including full joint income multiples, and now increasing terms. This is an entireley unavoidable result of propping banks loan books up and is now in effect an irreversible positive feedback loop.

For London this is probably the financial equivalent of a primed neutron device.

As someone else pointed out previously no-one is compelled to retire at a given age but what this will end up doing is compelling large numbers of people (especially Londoners unless they can cash-out) to work continuously till death.

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Workers are already one redundancy from the scrap heap after 55. Imagine being over 60, in 25-30 years time in a world of little or no work.

Put retirement ages up and increase mortgage terms all you like, hardly anyone will be working, at least full time.

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18 hours ago, ChewingGrass said:

As someone else pointed out previously no-one is compelled to retire at a given age but what this will end up doing is compelling large numbers of people (especially Londoners unless they can cash-out) to work continuously till death.

There's been a lot in the media in recent times about how awful mortgage ageism is, to your aspirational pensioner!

In response such as the Nationwide upped their mortgage age limit to 85! http://www.nationwide.co.uk/about/media-centre-and-specialist-areas/media-centre/press-releases/archive/2016/5/9-may-mortgage-lending

I can see their plan.... max mortgage £150k,  keep that below the Support for Mortgage Interest (SMI) £200k and the bankers are quids in for taxpayer's cash. There is no time limit for people on Pension Credit. So switch ageing problem borrowers to Interest Only and let SMI cover it.

SMI is still paying 3.12%  https://www.gov.uk/support-for-mortgage-interest/what-youll-get

 

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20 hours ago, TheCountOfNowhere said:

FTBs need to start offering 50% of the asking prices and telling the bankers and sellers to stick it when they dont go for it.

As much as 50%? I'd pay no more than 33% of the kite flying lunacy round here. 

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I dont mind 30yr mortgages ... we do live longer after all. BUT if people use them as the only way to afford extortianatly priced studio flats in SW8 at 12 x salary, funded by BOMAD loan .... THAT is a problem.

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1 minute ago, Kiwi_Muncher said:

I dont mind 30yr mortgages ... we do live longer after all. BUT if people use them as the only way to afford extortianatly priced studio flats in SW8 at 12 x salary, funded by BOMAD loan .... THAT is a problem.

Tptb keep telling us that "we" all live longer but I've not seen the data presented anywhere to support this assertion.  It's just a way afaict to justify the raising of the pension age 

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