Lifetime mortgages....fixed rate for 50 years....?

bukup

I believe in parts of Europe,it is common practice for families to pass the mortgage down from generation to generation.

A lifetime mortgage could mean a bigger house and smaller payments each month....?

The family house would be big enough for 'ALL' to live in (in harmony).

With rising costs,I would guess it is a practical situation to have ?

If you had the chance to reduce your outgoings by splitting it between family members,would you do it ?

There are obviously many pro's and con's to this arrangement,I'm sure you good people will inform us all !

jaype

on a personal note, i doubt that my parents, having worked hard all their life to afford a country home, would take kindly to coming back to London's Zone 3. Likewise, they wouldn't be at all chuffed if we all moved in with them, given that the only local job ops are in Asda or the local abbatoir so we'd both be unemployed yet miles from schools etc. Not exactly practical. Also, would both sets of gradparents live in the same home (good luck with the harmony on that one...). To be honest, it might work okay in rural Romania where you may still live in the same village all your life, but the Uk doesn't work this way anymore. sounds like just another creative way to feed the house price monster, using the excuse that it is 'perfectly normal' practice.

BobProperty

bukup wrote: »

.....A lifetime mortgage could mean a bigger house and smaller payments each month....?

Do the maths:
£100,000 repayment over 25 years at 6% is £644.30 pcm
£100,000 repayment over 50 years at 6% is £526.40 pcm

You really think it's worth saving £117.90 a month for 25 years so that you can pay £526.40 a month for a further 25 years to get on the property ladder?
I don't.

epz_2

arnt interest only morgages basicly an infinate term but you are meant to arrange a repayment vehical yourself, nothing stoping you setting up the vehical to pay it off after 50 years.

in practicallity though interest rates make up such a high % of the repayments that it would be daft to do, possibly in countries with VERY low interest rates where the free market has ramped up prices to a point where you need to pay back a large amount but arnt penalised too much for taking a long time to do it

Running_Horse

Presumably if it were widespread it would also lead to even higher price increases. Great for those already on the ladder, but not for the kids of today who will already be facing the prospect of higher university tuition fees, and diminished pensions.

Bad bad bad idea.