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Quicken

4 in 10 first time buyers will retire with mortgages

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According to the FCA: 

https://www.theguardian.com/money/2019/jan/10/four-in-10-uk-first-time-buyers-will-retire-with-mortgages-fca-warns

Jumbo 40 year mortgages. 

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12 hours ago, Quicken said:

I read this as a another lobbying / tweak to bank l;ending - all mortgages to be paid off before state retirement age.

Like the bank banging on about high LTV i.e. 4.5.

MMR had some horse trading, to get the first version thru - mainly 15% more than 4.5 and no upper year limit.

Id guess BoE wants all mortgages less than 4 LTE and 30 years or retirement age.

So, a couple more MMR tweaks due.

 

 

 

 

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The fact that people load themselves up with debt at max current salary multiples, lowest ever interest rates, for 35 years (at almost 40 years of age) to buy the most overpriced real estate in the history of the UK is an act of swarm stupidity. We truly are lemmings. 

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It is not only, will not be able to save 'enough' for a pension.......it is who will pay all the mortgages and rents when people are no longer able to work?😉

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" In a grim assessment of the financial health of UK households, the FCA warned that the burden of a mortgage throughout people’s working lives is likely to limit their ability to save for a pension and deal with financial shocks. "

Well that sounds like it's going to pan out well - more people entering retirement still needing to pay off their mortgage and those same people will be the ones who won't have been able to save as much into their pension to pay for it. You seriously could not make this up.

 

Edited by lostinessex

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48 minutes ago, lostinessex said:

" In a grim assessment of the financial health of UK households, the FCA warned that the burden of a mortgage throughout people’s working lives is likely to limit their ability to save for a pension and deal with financial shocks. "

Well that sounds like it's going to pan out well - more people entering retirement still needing to pay off their mortgage and those same people will be the ones who won't have been able to save as much into their pension to pay for it. You seriously could not make this up.

 

Again, that sounds like a BoE / FCA pitch at reducing the age at which mortgages end.

This is pitch to cap the end of motgage well before working life.

Imagine MMRv3 which limits mortgage terms to 5 years before retirement and insists that 20% of salary goes into a pension.

 

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54 minutes ago, spyguy said:

Again, that sounds like a BoE / FCA pitch at reducing the age at which mortgages end.

This is pitch to cap the end of motgage well before working life.

Imagine MMRv3 which limits mortgage terms to 5 years before retirement and insists that 20% of salary goes into a pension.

 

I like your thinking. Roll on MMRv2 first. As you suggested - less than 4 LTE and maximum term of 30 years or time to state pension (whichever is smaller).

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7 hours ago, winkie said:

It is not only, will not be able to save 'enough' for a pension.......it is who will pay all the mortgages and rents when people are no longer able to work?😉

I'm sure some companies will spring up who will pay it, but will inherit your house (or a vastly disproportionately large share) upon death. 

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  • 297 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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