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40 year mortgage

Pobby
Pobby Posts: 5,438 Forumite
in House buying, renting & selling
I mentioned a while ago my 21 year old nephew and his 20 year old partner are buying a £195,000 house. They do have the deposit but the mortgage is over 40 years. Maybe this will be the norm in the future.

Comments

  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    Pobby wrote: »
    I mentioned a while ago my 21 year old nephew and his 20 year old partner are buying a £195,000 house. They do have the deposit but the mortgage is over 40 years. Maybe this will be the norm in the future.

    Not for anyone over the age of 25, unless the government decides to raise the retirement age. The longer the mortgage term, the greater the total amount of intrest paid.
    "You were only supposed to blow the bl**dy doors off!!"
  • superfran_uk
    superfran_uk Posts: 1,121 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Dear god why would anyone do that to themselves?!

    I do hope it does NOT become the norm. If you can't afford to pay for your house of 25 years maybe you can't afford it at all??
  • Pobby
    Pobby Posts: 5,438 Forumite
    superfran_uk wrote: »
    Dear god why would anyone do that to themselves?!

    I do hope it does NOT become the norm. If you can't afford to pay for your house of 25 years maybe you can't afford it at all??

    Well there is just no telling him I`m afraid.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    - aged 21
    - first property
    - repayment mortgage?
    - 40 year term so monthly repayments are 1/40th not 1/25th
    - likely to move upwards in the property chain long before the end of a 25 year mortgage?

    not so mad after all,
    providing the early redemption costs are not too bad when they sell the house
  • Radiantsoul
    Radiantsoul Posts: 2,096 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Can't see a problem with it really, especially if there is flexibility to overpay and exit.
  • mlz1413
    mlz1413 Posts: 3,156 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    maninthestreet wrote: »
    Not for anyone over the age of 25, unless the government decides to raise the retirement age. The longer the mortgage term, the greater the total amount of intrest paid.

    This is already on the cards!

    "The State Pension age for both men and women is to increase from 65 to 68 between 2024 and 2046, with each change phased in over two consecutive years in each decade. The first increase, from 65 to 66, will be phased in between April 2024 and April 2026; the second, from 66 to 67, will be phased in between April 2034 and April 2036; and the third, from 67 to 68, between April 2044 and April 2046."
  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    mlz1413 wrote: »
    This is already on the cards!

    "The State Pension age for both men and women is to increase from 65 to 68 between 2024 and 2046, with each change phased in over two consecutive years in each decade. The first increase, from 65 to 66, will be phased in between April 2024 and April 2026; the second, from 66 to 67, will be phased in between April 2034 and April 2036; and the third, from 67 to 68, between April 2044 and April 2046."


    S*d it! Looks like I'll be working an extra year!!
    "You were only supposed to blow the bl**dy doors off!!"
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