svag Posted June 12, 2007 Share Posted June 12, 2007 "First it was mortgages equal to five or six times a homebuyer's salary. Now the half-century home loan beckons. A UK broker firm today revealed it was in talks with a lender about launching a 50-year mortgage. " http://business.guardian.co.uk/story/0,,2101112,00.html Quote Link to comment Share on other sites More sharing options...
ae589 Posted June 12, 2007 Share Posted June 12, 2007 Crap. This kind of credit extension could keep it going if people are stupid enough to do it. Quote Link to comment Share on other sites More sharing options...
chichi Posted June 12, 2007 Share Posted June 12, 2007 50 years! That's a long time to be working at paying a mortgage Quote Link to comment Share on other sites More sharing options...
MarkG Posted June 12, 2007 Share Posted June 12, 2007 This kind of credit extension could keep it going if people are stupid enough to do it. What 'credit extension'? We already have infinite mortgages (aka 'interest only'), so a 50-year mortgage is credit tightening in comparison. Quote Link to comment Share on other sites More sharing options...
Charlie Don't Surf Posted June 12, 2007 Share Posted June 12, 2007 Sounds like age discrimination to me! Quote Link to comment Share on other sites More sharing options...
Guest casaloco Posted June 12, 2007 Share Posted June 12, 2007 50 years! That's a long time to be working at paying a mortgage People in the UK wont fall for it. 50 year mortgages only worked in Japan because people there were USED to living with 4 generations in the same house. Anyway... 50 year mortgages arn't much cheaper per month than 25 year morgages due to all the interest. Quote Link to comment Share on other sites More sharing options...
Guest The_Oldie Posted June 12, 2007 Share Posted June 12, 2007 "First it was mortgages equal to five or six times a homebuyer's salary. Now the half-century home loan beckons.A UK broker firm today revealed it was in talks with a lender about launching a 50-year mortgage. " http://business.guardian.co.uk/story/0,,2101112,00.html Right on cue, exactly what we were discussing a few days ago http://www.housepricecrash.co.uk/forum/ind...st&p=660451 Quote Link to comment Share on other sites More sharing options...
It is different this time Posted June 12, 2007 Share Posted June 12, 2007 "First it was mortgages equal to five or six times a homebuyer's salary. Now the half-century home loan beckons.A UK broker firm today revealed it was in talks with a lender about launching a 50-year mortgage. " http://business.guardian.co.uk/story/0,,2101112,00.html every little help to save miracle economy. David Titmuss managing director of The Mortgage Lender, based in Hampshire, said "There is no reason why a mortgage should be restricted to just 25 or 30 years; it is now all about monthly income and ability to pay." How the hell do you think those, who get 50 year mortgage at 35, will still have the ability to pay at 85? I am beginning to believe that VI muppets would happily sell their grandmothers as long as it stops HPC! Quote Link to comment Share on other sites More sharing options...
FernandoMorientes Posted June 12, 2007 Share Posted June 12, 2007 Shocking...but you know I tend to think that the people of this country ARE stupid enough to buy into them. After all they have voted Nu Labour in for the last 10 years so why not burden themselves with yet more debt? Just think if this takes off we could hit the 2 trillion debt mark within the next 4 -5 years, quite an achievement from our caring goverment. Quote Link to comment Share on other sites More sharing options...
MarkG Posted June 12, 2007 Share Posted June 12, 2007 I am beginning to believe that VI muppets would happily sell their grandmothers as long as it stops HPC! Of course they will. What do they care about what happens in fifty years? They want their fat bonus this year, fifty years from now will be somebody else's problem. Quote Link to comment Share on other sites More sharing options...
Jason Posted June 12, 2007 Share Posted June 12, 2007 Isn't the average age of an FTB in there 30s..! So, they'll be working well into their 80s. Also it's a load of poo, as interest only is rife! Quote Link to comment Share on other sites More sharing options...
Smell the Fear Posted June 12, 2007 Share Posted June 12, 2007 It won't make much, if any, difference. Many buyers are already on IO which is the infinity mortgage. Also, stretching a repayment mortgage out to 50 years will have little impact on monthly payments as the vast majority is interest anyway. Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted June 12, 2007 Share Posted June 12, 2007 People in the UK wont fall for it. They will. They're already falling over each other to "get on the ladder" at all costs. Quote Link to comment Share on other sites More sharing options...
Guest Charlie The Tramp Posted June 12, 2007 Share Posted June 12, 2007 You pay the Lender rent for 50 years and they reward your loyalty by giving the house to your beneficaries. Quote Link to comment Share on other sites More sharing options...
nohpc Posted June 14, 2007 Share Posted June 14, 2007 50 years! That's a long time to be working at paying a mortgage People on IO mortgages who don't overpay are on never ending mortgages. Quote Link to comment Share on other sites More sharing options...
Furby Posted June 14, 2007 Share Posted June 14, 2007 People on IO mortgages who don't overpay are on never ending mortgages. Quote Link to comment Share on other sites More sharing options...
Loggy Posted June 14, 2007 Share Posted June 14, 2007 There is no reason why a mortgage should be restricted to just 25 or 30 years; it is now all about monthly income and ability to pay. Psst . . dont tell the 25-30 year olds that you wont want to work much after 50 because youll be knackered and want to slow down a bit. Quote Link to comment Share on other sites More sharing options...
His Tonyness Posted June 14, 2007 Share Posted June 14, 2007 I would imagine people will take on a 50 year mortgage in order to 'get on the ladder' then in a couple of years re-mortgage and continue to re-mortgage and with every passing re-mortgage hopefully bring their term down. Failing that, they'll enter into one with the mindset of a tennant, never having a hope of paying it off however using it as an alternative to renting whereby instead of paying a landlord, they'll take out the mortgage, pay it for about 25-30 years then sell and move into council housing with the added benefit of paying nominal rent. From the sale they'll have enough to pay off the mortgage (hopefully) and have a few quid left over for their old age or the family. The upshot: they get to tell overyone they are on 'the ladder', the banks make yet more money, the HPI machine keeps rolling along and Gordon is a happy bunny as his economy keeps ticking along while Britain's debt mountain grows to ever more heroic proportions. Quote Link to comment Share on other sites More sharing options...
crown Posted June 14, 2007 Share Posted June 14, 2007 People on IO mortgages who don't overpay are on never ending mortgages. No - they do have an end date, usually 25 years as standard. The property has to be sold to repay the loan that is all. Any mortgage running past retirement age of 65 will need proof from the borrower of a pension plan that will support themselves and the mortgage loan. Quote Link to comment Share on other sites More sharing options...
notthereyet Posted June 14, 2007 Share Posted June 14, 2007 "First it was mortgages equal to five or six times a homebuyer's salary. Now the half-century home loan beckons.A UK broker firm today revealed it was in talks with a lender about launching a 50-year mortgage. " http://business.guardian.co.uk/story/0,,2101112,00.html Another tactic to try and keep the HPI going they will try anything. A lender is not going to lend on a property which could be worthless at the end of a fifty year mortgage, as some people will be interest only during that period and the lender will want to recoup thier money even after fifty years. This would only work with a limited amount of properties and people. As for passing property and debt down the family,again if the reciever does not want to recive the debt the lender will want to recoup the money,they want a asset that is worth the money they are owed and are not going to want 100 year old slums. This will only happen if people keep panic buying,there is no did to panic buy at the moment. It is panic selling, by BTL etc at the moment. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted June 14, 2007 Share Posted June 14, 2007 IO is already an infinite mortgage so this doesn't help with affordability. Quote Link to comment Share on other sites More sharing options...
Ignorant Steve Posted June 14, 2007 Share Posted June 14, 2007 No - they do have an end date, usually 25 years as standard. The property has to be sold to repay the loan that is all. What are you blithering on about? Of course the property hasn't got to be sold. The loan has to be re-paid that is all. As everyone knows every IO mortgage is backed by an independent financial vehicle which will provide the capital to fully repay the initial loan. Aren't they? 50 year repayment mortgages are ludicrous. No further discussion needed. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted June 14, 2007 Share Posted June 14, 2007 You pay the Lender rent for 50 years and they reward your loyalty by giving the house to your beneficaries. That being the NHS and local authority? Quote Link to comment Share on other sites More sharing options...
benj Posted June 14, 2007 Share Posted June 14, 2007 As everyone knows every IO mortgage is backed by an independent financial vehicle which will provide the capital to fully repay the initial loan. Aren't they? Like an endowment policy? Quote Link to comment Share on other sites More sharing options...
mikthe20 Posted June 14, 2007 Share Posted June 14, 2007 Like an endowment policy? Made me chuckle - I remember when we bought our house in the mid-90s (just luck, we weren't market timing) and our friends laughed at us because we got a repayment mortgage and not an endowment. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.