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Debate House Prices


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First-time buyers opt for longer term mortgages

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Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    wymondham wrote: »
    Mortgages getting to be indefinite ........ isn't this called Rent?

    no it's called gearing

    as after 20-30 years you can sell, repay the mortgage and be left with a very handsome amount of cash
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    edited 16 September 2013 at 4:13PM
    wymondham wrote: »
    Mortgages getting to be indefinite ........ isn't this called Rent?


    It is just one way of making unaffordable property more affordable to the many.

    There are no doubt savvy individuals that can play the game and benefit from it.

    There are probably more poor sods that just get pulled in and struggle throughout the process. On the basis that more of the "early" years are going to be principally interest, even if you take a new mortgage several times there comes a point at which capital repayment has to be tackled.

    If you sell up and move on their is no guarantee the equity would be sufficient to "house " you.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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