The rise of the 40 year mortgage

wymondham

ukcarper wrote: »

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

if people move up the ladder then yes, but more people are opting to go straight for the 'forever' home (1st time buyers with 4 bed homes) thanks to schemes .... so maybe more than we think?

wymondham

michaels wrote: »

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.

yes and you're a savvy person... I wonder what percentage of people paying the mortgage have overpaid or even know they can do it..?

Thrugelmir

wotsthat wrote: »

My great grandparents purchased a house after my great grandfather's return from WW1 in 1922. It can't have cost more than £80.

My late grandparents bought their new semi in Woodford Green in 1934 for £250.

ukcarper

wymondham wrote: »

if people move up the ladder then yes, but more people are opting to go straight for the 'forever' home (1st time buyers with 4 bed homes) thanks to schemes .... so maybe more than we think?

So property is unaffordable but many FTB are going straight to 4 bed houses.

Graham_Devon

wotsthat wrote: »

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

Don't think anyone actively makes a decision to rent for 40 years. Anyone doing so for 40 years will likely have done so due to circumstances over those years.

It's a silly argument.

danothy

Graham_Devon wrote: »

Don't think anyone actively makes a decision to rent for 40 years. Anyone doing so for 40 years will likely have done so due to circumstances over those years.

It's a silly argument.

There's nothing silly about comparing the concern over someone choosing a 40 year mortgage to the concern over someone facing 40 years of renting if the choice they have is between a 40 year mortgage and 40 years of renting. Both still have to find a (say) monthly payment to keep a roof over their head for 40 years.

wotsthat

Graham_Devon wrote: »

Don't think anyone actively makes a decision to rent for 40 years. Anyone doing so for 40 years will likely have done so due to circumstances over those years.

It's a silly argument.

'Circumstances' or not people do rent for such periods of time and it doesn't cause headlines. It's not an argument anyway. Just a comment to allow some perspective when discussing the 'horror' of a 40 year mortgage.

!!!! happens and for a buyer the early years are when they'll be most impacted - makes no difference whether it's year two of a 25 or 40 year mortgage.

lisyloo

when interest only mortgages are basically infinity year mortgage and barely raise a ripple.

Err.........I/O mortgages have bee stopped.

wymondham

ukcarper wrote: »

So property is unaffordable but many FTB are going straight to 4 bed houses.

yep.... prices are too high, and with the 'help' being offered first timers are often setting their expectations and budgets higher as a result....

ukcarper

wymondham wrote: »

yep.... prices are too high, and with the 'help' being offered first timers are often setting their expectations and budgets higher as a result....

That doesn't make sense to me, yes prices are high but FTB buying 4 beds does not support that.