my mortgage is so large, i will never be mortgage free

Hectors_House

The_White_Horse wrote: »

the price of houses were getting out of control, and the left wing govt should have allowed interest rates to rise, but they deliberately kept them low so people could feel rich and mew to their hearts content.

And if you are lucky enough to have known this was what was happening (the majority had no idea it seems) why did you go ahead and buy?

I knew the system was out of kilter with people's salaries so kept looking for two years until I found a property being sold by people that didn't have their heads in the sand....now I just have to put up with the comments from my neighbour who paid £50k more then I did.

Queen-Bee_2

People will always want to buy their own home - this desire is deeply ingrained in our national psyche. And they will do whatever they need in order to do this.

So if financial institutions are [were] prepared to lend 8-9-10x peoples' annual income over 30 years or more, then people will take these products out to achieve their dream.

As more and more people did this, so others had to follow - effectively, they had no choice if they were to successfully compete with other house-buyers.

In my view, this is a key reason why the market was able to overheat. If people hadn't been able to access these levels of borrowing from the financial institutions, prices simply could not have risen in the way they did.

I don't have a particular political axe to grind, but it would have been logical for the government to have implemented some sort of regulatory control on lending to reduce the chances of a boom - followed by a bust.

It's hard to imagine such an overheating being able to happen had people been limited to multipliers of 3.5X their annual income. It would have put the onus on encouraging people to build up greater levels of saving to achieve their ambitions instead...
QB

Gorgeous_George

It was Margaret Thatcher and the Tory governemnt that sold off council homes and forced home-ownership on the masses. Labour failed to reverse the damage but had they tried, would have been unelectable.

That's the problem with our democratic system that we try to force on the rest of the world. People vote for the crowd pleasers.

GG

pelirocco

alared wrote: »

I think people who bought post 1997 should start paying a true and proper interest rate and shouldn`t expect to be "cushioned" by savers who are getting derisory rates.

I bought pre 1997 and was paying 15%, maybe a taste of that would stop today`s whingers.

Same here bought 1991 , interest rate was 16%:eek:

My parents in law bought in 1965 , house cost them around £2k , they saved like mad together the few hundred pounds deposit and struggled for years to pay their mortgage , they had 2nd hand furniture no carpets no heating no holidays , they werent unusual , it was the norm . Nowadays ( god i sound like my parents :rotfl:) it appears that everyone thinks its their right to have everything

The_White_Horse

i would rather pay 15% on 90k than 5% on 290k.

dizzybuff

Thinks the OP has read too many academic books and talks aload of toff

:P

Just my opinion and yes I have a morgage from 4 years ago , so I pay it , I took it out and if I cant afford it I get a second job

alared

pelirocco wrote: »

Same here bought 1991 , interest rate was 16%:eek:

My parents in law bought in 1965 , house cost them around £2k , they saved like mad together the few hundred pounds deposit and struggled for years to pay their mortgage , they had 2nd hand furniture no carpets no heating no holidays , they werent unusual , it was the norm . Nowadays ( god i sound like my parents :rotfl:) it appears that everyone thinks its their right to have everything

You`ve hit the nail right on the head there.
Live now pay later or better still go bankrupt for a year.

No need to wonder how we got into the mess we`re now in.

ILW

The_White_Horse wrote: »

i would rather pay 15% on 90k than 5% on 290k.

Do you whinge and moan about everything, or is it just housing?

littlemrtinkle

Stop moaning and downsize if you are finding your mortgage too high?

Birdy12

Assume when you took the mortgage out, you agreed to repay over a set number of years? So, technically, you will be mortgage free in the future.

At the end of the day, if you don't like having such a large mortgage, sell the property and either

a) buy something smaller
b) rent

Oh, and c) stop moaning about it