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Started by bossab2 on 12-Oct-2017 18:09:22
40 year mortgages: the last gasps of the housing pyramid scheme ?

http://www.bbc.co.uk/news/uk-41594765

Like Road Runner, eventually everyone will look down..

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Dementor - 12 Oct 2017 18:12:08 (#1 of 151)

There's 100 year mortgages in Japan, I think.

inandout - 12 Oct 2017 18:13:36 (#2 of 151)

And in Germany.

bossab2 - 12 Oct 2017 18:17:04 (#3 of 151)

So your late father has left you his LP collection.

And some hefty debts....

Lawlsie - 12 Oct 2017 18:19:59 (#4 of 151)

In the early 70s you could take out mortgages of 30 or 35 years. This is nothing new.

tasselhoff - 12 Oct 2017 18:20:07 (#5 of 151)

It's probably the last generation before the rentier classes own everything.

tasselhoff - 12 Oct 2017 18:20:39 (#6 of 151)

or the whole economic system falls apart

bossab2 - 12 Oct 2017 18:24:44 (#7 of 151)

Like a good Ponzi Scheme its only good until reality dawns:

The BOE cannot put up interest rates, as once the game is stopped there is the danger of a downward spiral.

invicta - 12 Oct 2017 18:31:53 (#8 of 151)

The BoE has already signalled that they will, bossab...

Tenesmus - 12 Oct 2017 18:48:34 (#9 of 151)

A young colleague had a 40 year mortgage about 5 years ago. I must admit I had never heard of it before then.

bossab2 - 12 Oct 2017 18:58:30 (#10 of 151)

Given that your earning potential drops rapidly after 50, I don't know how people are proposing to pay off these things...

Mum and Dads Legacy ?

darkhorse - 12 Oct 2017 19:00:52 (#11 of 151)

Given that your earning potential drops rapidly after 50, I don't know how people are proposing to pay off these things...

Depends what “earnings potential” means. I presume earnings growth drops off after fifty (people have risen to about the max earnings level they’re going to manage). But as long as ill health doesn’t stop things, they may get 15 more years of solid earnings.

tasselhoff - 12 Oct 2017 19:02:31 (#12 of 151)

Unemployment is relatively high for "seniors".

darkhorse - 12 Oct 2017 19:04:08 (#13 of 151)

Oh yeah, just saying though.

Pinkgum - 12 Oct 2017 19:38:10 (#14 of 151)

I'm 42 and having just got a MIP it seemed they would have been happy to give me a 30 year term. That's with a lot of equity though.

bossab2 - 12 Oct 2017 19:39:12 (#15 of 151)

Your chances of getting hired fall off after 50, so if you get made redundant your then take a hit on earnings.

indlovubill - 12 Oct 2017 19:44:06 (#16 of 151)

Start your own business, bossab www.gloomanddoom.co.uk is still available I just checked!

bossab2 - 12 Oct 2017 19:45:37 (#17 of 151)

Starting your own business is a good way of putting in a huge amount of effort, for little reward.

Been there, done that.

indlovubill - 12 Oct 2017 19:47:23 (#18 of 151)

What did you do?

Tadagee - 12 Oct 2017 19:53:36 (#19 of 151)

Children's entertainer?

TableTopJoe - 12 Oct 2017 19:59:08 (#20 of 151)

Motivational speaker?

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