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Warwickshire Lad

40 Year Mortgages

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A 19-year old friend of mine and his 18-year old girlfriend are both on low-paid jobs, and have just bought a house in my town, which they have paid £105,000 for.

How did they fund such a purchase ? A 40-year mortgage, of course - handed to them by Northern Rock.

They'd better start hoping for for pay rises unless they still want to be paying the loan back as they both approach the age of 60.

The lender will inevitably make an absolute killing from this couple on the Interest over such a period.

Of course, a while ago I said my piece to the girl about not buying now. The funny thing is, both her parents and her brothers actually rent (one in a council house, the other privately).

Of course, she didn't listen. No-one ever does when it comes to property.

I fear for the future of this couple. They have made an extremely bad decision, and once their 2-year fixed rate runs out, I do wonder where the Bank of England base rate will be then.

Their story is one of a tragedy in the making, and they will be one of perhaps millions to suffer.

This bubble has been pumped up so much, that when it pops the damage will be felt to its maximum effect.

This country's property-obsessed culture, the mortgage lenders, Estate Agents, the media, and all the people who have conspired to make this tragedy possible should have their heads put on a ******ing pike.

Edited by Warwickshire Lad

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How did they fund such a purchase ? A 40-year mortgage, of course - handed to them by Northern Rock.

They'd better start hoping for for pay rises unless they still want to be paying the loan back as they both approach the age of 60.

Why the heck would anyone do this when 10-year fixed rates are around 4.75%?

Or is this one of these 'up to 125%' NAAVLPs?

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The thing is, increasing the mortgage term beyond 30 years has little impact on the monthly payments. It's really just a stunt whereby the bank convinces people to borrow way more than they know they should.

They would have been better to go interest only and pay off chunks when they can afford to.

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We already have 40 year mortgages in the form of interest-only mortgages which are never paid off.....INFINITELY LONG!

Many people have come to this forum mentioning 50 year and 100 year mortgages but an interest-only mortgage is a de facto 100 year mortgage if you pay off the capital very slowly.........

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They'd better start hoping for for pay rises unless they still want to be paying the loan back as they both approach the age of 60.

in fairness, being ten years older than this and resigned to another wait of up to five years, I (along with many other HPCers) could wind up in the same boat with a standard 25yr mortgage. <comment made in the interests of balanced reporting>

I wonder what proportion of the pitifully small number of FTBs are naive teenagers?

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  • 301 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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