Interest-only mortgages expiring

csgohan4

I think many people buying a house do so as 'it's cheaper than rent'.


However then bury their head in the sand when it comes to interest only mortgages and want to blame someone else.

csgohan4

leveller2911 wrote: »

I still think many people (correctly) look at buying a house as a home rather than an investment.......... Personally I see a house as a home ,not a way to make money..:)

Unfortunately you see many posters here wanting to get a BTL as their first home and not knowing the first thing about being a LL sadly.

knightstyle

We are in exactly the same position, have a house in France where we lived for 17 years. We then retired to UK but couldn't sell the French house for what it cost to build several years earlier so let it out.
We now have a UK property which has had an interest only mortgage since we bought 10 years ago.
Hopefully we will eventually sell the French house and pay of the mortgage.
But neither the French house nor the UK house have gone up in value for the last 10 years!!! Still we aren't complaining just know we will have to pay it off sooner or later.

Miss_Samantha

leveller2911 wrote: »

I still think many people (correctly) look at buying a house as a home rather than an investment.......... Personally I see a house as a home ,not a way to make money..:)

Your first property is your home for obvious reasons. But considering the financial costs it should still turn out to be a good investment otherwise you could end up in financial ruin.

There is nothing wrong in investing in property purely "to make money" after that.

leveller2911

Miss_Samantha wrote: »

Your first property is your home for obvious reasons. But considering the financial costs it should still turn out to be a good investment otherwise you could end up in financial ruin.

There is nothing wrong in investing in property purely "to make money" after that.

On a personal basis I agree it may be best for the individual but for society in general the result is more problems than solutions, finite land to build on, developers choosing not to increase their volumes of builds purely to keep the prices high by restricting supply.

The end result is over priced houses that people can't afford or if they can they need a 40yr/lifetime mortgage. Its a pyramid scheme in all but name and there comes a tipping point even after all the Govt schemes to help people.

Long term the investement argument for the wider society is not a positive one but thats for another thread..:)

Miss_Samantha

leveller2911 wrote: »

On a personal basis I agree it may be best for the individual but for society in general the result is more problems than solutions, finite land to build on, developers choosing not to increase their volumes of builds purely to keep the prices high by restricting supply. The end result is over priced houses that people can't afford or if thye can they need a 40yr/lifetime mortgage.....

What you describe is a lack of investment in property.

losgiganteskid

knightstyle wrote: »

But neither the French house nor the UK house have gone up in value for the last 10 years!!!

There can't be many (if any) properties that haven't increased in value over the last 10 years in the UK surely !

AdrianC

losgiganteskid wrote: »

There can't be many (if any) properties that haven't increased in value over the last 10 years in the UK surely !

Are you kidding me? There are many parts of the country that are still below 2008 values. There're relatively few parts where prices have risen substantially over the last few years.

G_M

adindas wrote: »

TBH It will take a !!!!!! person not to understand this. But it is extremely hard to believe if anyone capable of taking a mortgage, purchasing a house did not know that with interest only mortgage the capital has not been paid.
.

Yeah but just look how many people voted Brexit basically as a protest/to kick the goverment and didn't understand it might lead to us leaving the EU....

leveller2911

Miss_Samantha wrote: »

What you describe is a lack of investment in property.

Yes, but we also have finite land to build on, neither Tory nor Labour govts have invested in the infrastructure. We also have a problem with developers choosing to limit the number of houses they build purely to keep the prices high.

What we actually need is a massive Social house building programme where we build cheap,affordable ,well constructed houses but what we currently have is a limited number of poorly constructed ,over priced rabbit hutches.

We also have a problem with an increased population and no where to home them, again its down to investment and Govt policy.

If we had the land mass of Canada or even France we wouldn't have quite such a problem. When my own home was built in 1993 the build cost for a 3 bed semi was less than £40k and even today a half decent 3 bed house can easily be built for under £100k , its the land that now costs the same as the build in many areas of the country when it used to be 25% of teh build cost was the land.