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xian

Oo's Paying Off Mortgage

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Saw an article just now about paying down mortgages. Close to my heart since I have done the same. However, the percentages of non-mortgage debtors at the stated age quoted seem high.

How do people here think this can be reconciled with such high house prices? How is it that such high house prices still allow people to pay off their mortgages at a relatively young age?

Article first line: HOMEBUYERS are paying off their mortgages younger and faster, according to new figures. The average age for owning a house outright has fallen to just 48 - the lowest for 25 years.

linky: http://www.thisismoney.co.uk/mortgages/mor...8&in_page_id=58

Edited by xian

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Could they be downsizing.

Also

Remember some of these will have bought property years ago during the last slump. You could pick up a terrace house in my area for £30 then. It wouldn't be that difficult to pay that off today.

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Saw an article just now about paying down mortgages. Close to my heart since I have done the same. However, the percentages of non-mortgage debtors at the stated age quoted seem high.

How do people here think this can be reconciled with such high house prices? How is it that such high house prices still allow people to pay off their mortgages at a relatively young age?

Article first line: HOMEBUYERS are paying off their mortgages younger and faster, according to new figures. The average age for owning a house outright has fallen to just 48 - the lowest for 25 years.

linky: http://www.thisismoney.co.uk/mortgages/mor...8&in_page_id=58

Houses were ridiculously cheap in the mid nineties.

I FTBd in the mid nineties and paid it off by 2001. I know loads of people who did the same in their 30s.

This has probably pulled the average age down by a lot.

People's earning power often peaks in their late 30s to early 40s.

A typical 1995 house is less than a year's salary (in 2006) for a graduate falling in this age bracket.

Edited by Without_a_Paddle

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Saw an article just now about paying down mortgages. Close to my heart since I have done the same. However, the percentages of non-mortgage debtors at the stated age quoted seem high.

How do people here think this can be reconciled with such high house prices? How is it that such high house prices still allow people to pay off their mortgages at a relatively young age?

Article first line: HOMEBUYERS are paying off their mortgages younger and faster, according to new figures. The average age for owning a house outright has fallen to just 48 - the lowest for 25 years.

linky: http://www.thisismoney.co.uk/mortgages/mor...8&in_page_id=58

Downsizing does it. I paid my mortgage off 6 years, ago mid 30's. Downsized from 4 bed detached to 2.

I now want to upsize again but just waiting for the 50k differential that I had when I downsized.

The gap is starting to close with 15% reductions below asking price now the norm on 4 bed detached.

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Saw an article just now about paying down mortgages. Close to my heart since I have done the same. However, the percentages of non-mortgage debtors at the stated age quoted seem high.

How do people here think this can be reconciled with such high house prices? How is it that such high house prices still allow people to pay off their mortgages at a relatively young age?

Article first line: HOMEBUYERS are paying off their mortgages younger and faster, according to new figures. The average age for owning a house outright has fallen to just 48 - the lowest for 25 years.

linky: http://www.thisismoney.co.uk/mortgages/mor...8&in_page_id=58

Could it be that many people who can't afford to move up to a bigger property didn't have large mortgages on their original purchases? I don't think that many of my friends in the North owe more than £50k (mid 30's), so with two incomes could afford to pay off the balance reasonably quickly if they wanted to.

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Guest muttley

Maybe people have realised that the future is not as secure as once thought, and that the debts will have to be payed back at some time.

So they pay back the debts and the economy shrinks,so they become reluctant to spend,so the economy shrinks some more,so they pay off more debt.....

Cue The Vapours.......

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Really? Then what happens? In late 40s their salary falls? I don't think so, surely not?

Not for everybody but once people hit 50 it becomes harder to change jobs, if you're made redundant it can be very hard to get back into the labour market, especially at the same level.

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Guest Guy_Montag

Could this be people remortgaging?

If I have 50k mortgage on my house, remortgage (with someone else) for 100k so I can start my business, surely this would count as paying my mortgage back young & early.

Probably not, but just a suggestion.

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I expect those redeeming their mortgages bought long before the current madness started.

GM,

That's must be true.

We bought our house 11 years ago (1995) (to the day!) for £78k - we took a repayment mortgage of £58k which now stands at around £43k. We remortgaged 5 years ago for a better rate but didn;t increase the balance.

Our current capped mortgage has a redemption penalty through to July and we will then repay the mortgage using some of our savings.

I would expect there are many people in similar situations who bought in the mid 1990's and are now in a position to pay it off.

Currently houses similar to ours change hands for around £200 - £225k - there is just NO way we would be able to afford a mortgage of that size let alone pay it off in 11 years.

M21er

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Really? Then what happens? In late 40s their salary falls? I don't think so, surely not?

It doesn't have to fall. If it stagnates, it just stops getting competitive with inflation.

People often move sideways in their careers at this age not upwards.

Also, as previously mentioned, it can get harder to find jobs at this age.

Often people have to downsize just to stay in a job.

(am I allowed to say stagnate on here?)

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Yep, we're overpaying by the maximum amount with additional surplus being squirrled in ISA's, PB's etc. Come the end of the 5 year fix it all goes to reduce the amount again. Might even clear the sucker in the not to distant future. We last moved in 1998.

Oddly, the Nationwide sent us a leaflet recently encouraging overpayment. Trying to reduce their exposure to neg equity reposessions?

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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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