Gains made using Directors Loan

[Lance]

Actually when you take a mortgage, you invest with borrowed money. And lot of it. So not all borrowed money is bad.

A mortgage is not really debt. I know it is technically but it should not be considered so.
In fact try getting a car on credit with a debt of hundreds of thousands that isn't a mortgage.

As for investment. I'll say the same. If it's the house you live in then you should not consider it an investment. It's your home. If it goes down in real value that matters not a jot to you unless you want to sell.

[cwah]

A mortgage is not really debt. I know it is technically but it should not be considered so.
In fact try getting a car on credit with a debt of hundreds of thousands that isn't a mortgage.

As for investment. I'll say the same. If it's the house you live in then you should not consider it an investment. It's your home. If it goes down in real value that matters not a jot to you unless you want to sell.

If a mortgage is not debt, then what it is?

And real value matters as well as interest rate. What do you think would happened if interest rate goes up and you are in negative equity because your house price lost value? You risk losing everything!

[malvolio]

If a mortgage is not debt, then what it is?

A secured loan against an asset. There is a lien on the asset in favour of the mortgage provider if you default. It is not legally a debt, since the money has been paid.

[cwah]

A secured loan against an asset. There is a lien on the asset in favour of the mortgage provider if you default. It is not legally a debt, since the money has been paid.

Are you saying that a secured loan isn't debt?

The legal definition of debt is simple though:
"A sum of money that is owed or due to be paid because of an express agreement; a specified sum of money that one person is obligated to pay and that another has the legal right to collect or receive."

Even in accounting you can only be creditor OR debtor. There isn't anything in between.

[malvolio]

Are you saying that a secured loan isn't debt?

The legal definition of debt is simple though:
"A sum of money that is owed or due to be paid because of an express agreement; a specified sum of money that one person is obligated to pay and that another has the legal right to collect or receive."

Even in accounting you can only be creditor OR debtor. There isn't anything in between.

OK, have it your way. The monthly payments and any final balance are a debt, to repay the mortgage loan. I don't see such detail adds any benefit to the discussion. YMMV

[northernladuk]

<mod snip - no real contribution to thread>

[Lance]

If a mortgage is not debt, then what it is?

And real value matters as well as interest rate. What do you think would happened if interest rate goes up and you are in negative equity because your house price lost value? You risk losing everything!

I didn't say it wasn't a debt. I said it should not be treated as a debt. Please read and digest before spouting your usual nonsense.

Interest rates have no impact on equity. You go into negative equity when the value of the house goes below the money owed on the mortgage.
And negative equity is only a problem if you can't afford the payments. Not that we're going see negative equity until house prices drop which seems unlikely as there aren't enough being built.

Your grasp of basic numbers is as poor for household finances as it is for contractor income.