The rise of the 40 year mortgage

uncreative

Its all a big game anyway, so just do what makes you feel better.

Go back in time to the point when the first £1 was created by the reserve bank. It was lent to the Bank of England at 5%. But, only £1 was in existence so where does the interest come to pay it back? Nowhere, thats where; the repayment of interest is simply a mechanism to keep the wheels spinning, it will never truly be repaid.

Its a fiat currency based on an ever increasing multiplier. 90% of all money and debt doesn't really exist. Now you know that, forget about anything other than enjoying yourself.

zagubov

wotsthat wrote: »

High tax rates and high inflation? Yes debt is being eroded but it's a mercy of the small variety.

Inflation, whatever other harm it does, has long been the friend of the debtor.

jamesd

Mistermeaner wrote: »

Don't disagree with any of that, but psychologically I just want my mortgage gone

Yes, many do. I'm one of those who's content knowing I can pay it off whenever I want to, currently using non-pension savings and investments, which are currently worth something more than twice the mortgage balance.

Generali

michaels wrote: »

But they might have been able to invest a larger sum in property with the lower payments from a longer term and of course property investment is geared unlike pension investment.

Most pension investments are geared just less visibly. Companies in which you invest have borrowed on your behalf. That is the best sort of gearing as if the company goes bust you aren't pursued for the losses. :money:

wymondham

I can see this being ok if people do overpay etc, but it would be interesting to know what proportion of mortgage payers do this? I suspect most see the X term as the X term and pay just the required amount..?

lisyloo

I can see this being ok if people do overpay

I would have thought that most people who have kids don't have spare cash to overpay and some even re-mortgage to take on more debt, in fact they were encouraged to do so by people like Carole Vorderman.
The vast majority of the population aren't particularly savvy about money.

Circumstances do change, but I can't see any reason to assume they will always improve, in fact people die, get sick, lose their jobs, divorce all the time.

ukcarper

wymondham wrote: »

I can see this being ok if people do overpay etc, but it would be interesting to know what proportion of mortgage payers do this? I suspect most see the X term as the X term and pay just the required amount..?

How many people have their first mortgage for the full term, the majority will move before then I did.

michaels

wymondham wrote: »

I can see this being ok if people do overpay etc, but it would be interesting to know what proportion of mortgage payers do this? I suspect most see the X term as the X term and pay just the required amount..?

Really - I care not one iota what the term is, just what the best deal is and remortgage each time a new customer deal becomes cheaper than any existing providor retention deal. Shortest mortgage was a fee free (legals and valuation paid by lender) intro offer with a 6 month teaser rate offer and no erp, think that was the Leeds or something similar about 10 years ago.

princeofpounds

I find it funny that there is so much fuss about 40 year mortgages, when interest only mortgages are basically infinity year mortgage and barely raise a ripple.

wotsthat

wymondham wrote: »

I can see this being ok if people do overpay etc, but it would be interesting to know what proportion of mortgage payers do this? I suspect most see the X term as the X term and pay just the required amount..?

Are you as worried about people who decide to rent for 40 years and only pay the required amount?