Quicken Posted January 10, 2019 Share Posted January 10, 2019 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. Quote Link to comment Share on other sites More sharing options...
spyguy Posted January 11, 2019 Share Posted January 11, 2019 12 hours ago, Quicken said: 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. 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. Quote Link to comment Share on other sites More sharing options...
stuckmojo Posted January 11, 2019 Share Posted January 11, 2019 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. Quote Link to comment Share on other sites More sharing options...
winkie Posted January 11, 2019 Share Posted January 11, 2019 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?? Quote Link to comment Share on other sites More sharing options...
lostinessex Posted January 11, 2019 Share Posted January 11, 2019 (edited) " 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 January 11, 2019 by lostinessex Quote Link to comment Share on other sites More sharing options...
spyguy Posted January 11, 2019 Share Posted January 11, 2019 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. Quote Link to comment Share on other sites More sharing options...
Quicken Posted January 11, 2019 Author Share Posted January 11, 2019 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). Quote Link to comment Share on other sites More sharing options...
btd1981 Posted January 11, 2019 Share Posted January 11, 2019 Further evidence for my mother in law that people had it just as hard back then. Quote Link to comment Share on other sites More sharing options...
Orb Posted January 11, 2019 Share Posted January 11, 2019 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. Quote Link to comment Share on other sites More sharing options...
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