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Young face growing mortgage debt burden

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Young first-time buyers are increasing their overall mortgage debt in order to tackle short-term financial pressures. The average mortgage term is lengthening from the traditional 25 years, according to figures from broker L&C Mortgages. Its figures show the proportion of new buyers taking out 31 to 35-year mortgages has doubled in 10 years. That means lower monthly repayments, but a bigger overall bill owing to the extra interest incurred.

The average term for a mortgage taken by a first-time buyer has risen slowly but steadily to more than 27 years, according to the L&C figures drawn from its customer data. More detailed data shows that in 2007, there were 59% of first-time buyers who had mortgage terms of 21 to 25 years. That proportion dropped to 39% this year. In contrast, mortgage terms of 31 to 35 years have been chosen by 22% of first-time buyers this year, compared with 11% in 2007.

BBC

 

Help is coming, help to buy is coming.

Edited by rollover

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Makes sense. Young people won't ever retire, let's load them with as much debt as possible for as long as possible.

If I were in University today, I'd be seriously thinking about how to do as much damage to the system as possible - so I understand why some of the Corbyn voters aren't idiots but pursuers of "scorched earth".

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21 minutes ago, stuckmojo said:

Makes sense. Young people won't ever retire, let's load them with as much debt as possible for as long as possible.

If I were in University today, I'd be seriously thinking about how to do as much damage to the system as possible - so I understand why some of the Corbyn voters aren't idiots but pursuers of "scorched earth".

A reset is not a problem for those with nothing to lose.

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15 minutes ago, Si1 said:

A reset is not a problem for those with nothing to lose.

I believe this was in part a reason for the brexit vote.

Any change is better than no change. Things seem to be rapidly coming to a head.

I'm still waiting real action though.

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1 hour ago, frederico said:

I

Any change is better than no change.

Sounds a bit like this man

Quote

For five years Sean Murphy was driven to distraction by a painful blemish that no amount of creams, ointments or doctors' appointments could cure.

So he came up with his own radical and permament procedure to remove the stubborn wart forever - he blasted it with a 12-bore shotgun.

But not only did the blast take off almost his entire finger, it also left him facing 15 years in jail for the illegal possesion of a firearm.

Yesterday, with only a stump to show for the middle of his left hand, and a suspended 16-week prison sentence, he insisted he had no regrets.

http://www.telegraph.co.uk/news/health/8577572/Wart-blasted-off-with-shotgun.html

 

Dislike of Corbyn does not mean that I like the status quo.  In the same that when I have a migraine, I really want to get rid of it, but I don't want a bullet in my brain.

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1 hour ago, iamnumerate said:

Sounds a bit like this man

http://www.telegraph.co.uk/news/health/8577572/Wart-blasted-off-with-shotgun.html

 

Dislike of Corbyn does not mean that I like the status quo.  In the same that when I have a migraine, I really want to get rid of it, but I don't want a bullet in my brain.

Have some more debt, you will have another kind of headache.

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On 12/10/2017 at 8:51 AM, frederico said:

I believe this was in part a reason for the brexit vote.

Any change is better than no change. Things seem to be rapidly coming to a head.

I'm still waiting real action though.

I think the real action will be Corbyn winning the next general election.  Si1 made a good point - reset is not a problem for those with nothing to lose.

At the last general election,  I think the young finally found their voice.

Up to then, I think they felt what was the point, nobody listened to them in favour of the property haves aka old people who were more likely to vote.

There has become an increasing realisation of the potential of their voting power and more and more people are becoming very angry.

In many ways I think Corbyn would be a disaster.  But I'm more than happy to push this reset button and let the chips fall where they may. Otherwise it will simply be more of the same.

Maybe this is what is actually needed.

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On 10/12/2017 at 8:11 AM, stuckmojo said:

Makes sense. Young people won't ever retire, let's load them with as much debt as possible for as long as possible.

If I were in University today, I'd be seriously thinking about how to do as much damage to the system as possible - so I understand why some of the Corbyn voters aren't idiots but pursuers of "scorched earth".

If they knew the utter contempt the managers of these universities have for the people who pay 10k a year who end up with a minimum wage job and 40k worth of debt at 6%+ compounded then they would/should do as you say. This week in a meeting with a number of manager types discussing the fall in student numbers there are people complaining about student numbers, someone else says," but how do we get more when they struggle to get a job when they leave and are massively in debt? Then the big one: I don't care how we get these *uckers in just get them through the door and say whatever you need to achieve it!

 

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We are all commodities after all.....almost everything we do creates money for another, but it is a two way thing, it has to work for both the provider and the recipients, there are plenty of alternatives thankfully, monopolies are generally only one way..... competition is better.;)

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The system in Switzerland is strange. It mostly seems to involve two mortgages. One smaller mortgage which you do pay down to increase the security of the loan for the bank. The other larger part of the mortgage is an interest only loan which you don't pay off. House prices are very expensive in Switzerland (as is everything else).

So unfortunately, there are real life precedents for this sort of thing and I don't see what will stop the banks in the UK just continuing to extend the mortgage terms. Morons will of course see this as great because they can meet the monthly payments but won't understand that it's just a giant transfer of wealth from their own productivity to the current asset owners. I realised the system was rigged a long time ago and decided to get on the rigged side of it.

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6 minutes ago, dugsbody said:

I realised the system was rigged a long time ago and decided to get on the rigged side of it.

That's when you became a banker and built up a BTL empire?

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10 minutes ago, dugsbody said:

The system in Switzerland is strange. It mostly seems to involve two mortgages. One smaller mortgage which you do pay down to increase the security of the loan for the bank. The other larger part of the mortgage is an interest only loan which you don't pay off. House prices are very expensive in Switzerland (as is everything else).

So unfortunately, there are real life precedents for this sort of thing and I don't see what will stop the banks in the UK just continuing to extend the mortgage terms. Morons will of course see this as great because they can meet the monthly payments but won't understand that it's just a giant transfer of wealth from their own productivity to the current asset owners. I realised the system was rigged a long time ago and decided to get on the rigged side of it.

They do that kind of mortgage here, part interest only part repayment...or look at an 'offset mortgage'......only have to ask.;)

Edited by winkie

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1 minute ago, sPinwheel said:

That's when you became a banker and built up a BTL empire?

Nope, people farming is a skill I've not acquired. I just have a modest house of my own and a mortgage which I could pay off if I choose. 

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when the future is either
1) neofeudalism or. 2) neofeudalism

8 hours ago, ARENAPUA said:

I think the real action will be Corbyn winning the next general election.  Si1 made a good point - reset is not a problem for those with nothing to lose.

At the last general election,  I think the young finally found their voice.

Up to then, I think they felt what was the point, nobody listened to them in favour of the property haves aka old people who were more likely to vote.

There has become an increasing realisation of the potential of their voting power and more and more people are becoming very angry.

In many ways I think Corbyn would be a disaster.  But I'm more than happy to push this reset button and let the chips fall where they may. Otherwise it will simply be more of the same.

Maybe this is what is actually needed.

Agree 100%.

But you can't rule out the Tories stealing another election by throwing money at boomers or wannabe boomers in the form of Help To Buy

Will be voting for Corbyn. I've drifted increasingly leftwards in recent years. I actually don't think capitalism works at all (all it does is transfer the economy on a plate to ho moaners in my experience). Probably fixable but no political will to do it

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4 hours ago, sPinwheel said:

That's when you became a banker and built up a BTL empire?

I do work for numerous of the big boys. I know it's hypocrisy but I don't care. I take as many $$$ as I can for as little effort possible.

Every little helps. 

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14 minutes ago, ccc said:

I know it's hypocrisy but I don't care. I take as many $$$ as I can for as little effort possible.

So you're one of those productive people i keep hearing about.

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16 minutes ago, sPinwheel said:

So you're one of those productive people i keep hearing about.

I'm entirely non productive. But I try hard to do a decent job of the shite I'm faced with. 

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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