40 year fixed rate mortgage

[vetran]

Build some flaming houses government!

[ladymuck]

Fair enough, but how do you reconcile this view with your previous statement of "the unnatural propping up of the housing market that keeps prices inflated"?

It's a sticking plaster on the tumour. I'd much rather see greater availability and a levelling of prices so that this type of product simply isn't needed. We know that won't happen as it's not in any home-owner's interest (as Whorty alluded to). There is a fundamental disconnect between the cost of housing and income levels.

Or, thinking about it further, perhaps the real issue is that people want to live in nice houses and not flimsy rabbit hutches so there's a disconnect between expectation and the type of housing stock available?

[Paralytic]

It's a sticking plaster on the tumour. I'd much rather see greater availability and a levelling of prices so that this type of product simply isn't needed. We know that won't happen as it's not in any home-owner's interest (as Whorty alluded to). There is a fundamental disconnect between the cost of housing and income levels.

This disconnect is not the same throughout the UK though, and is much more prevalent in the SE, which is due to that being where large parts of our economy are situated, so where people want to/need to work.

Unless we get to a point where this is addressed, the issue will always exist. The WFH drive caused by Covid may help a little bit, but i can't see any significant number of employers moving to 100% WFH, which would have allowed these employees to move to more affordable houses that already exist in other parts of the country.

[vetran]

This disconnect is not the same throughout the UK though, and is much more prevalent in the SE, which is due to that being where large parts of our economy are situated, so where people want to/need to work.

Unless we get to a point where this is addressed, the issue will always exist. The WFH drive caused by Covid may help a little bit, but i can't see any significant number of employers moving to 100% WFH, which would have allowed these employees to move to more affordable houses that already exist in other parts of the country.

We have an opportunity to actually build the Northern Powerhouse. Lets hope Bojo manages it.

We need replacement jobs, homes and to move away from London.

I am perfectly happy to lose some profit in the house if my kids could get a decent job and afford a decent home to raise kids in.

[SueEllen]

We have an opportunity to actually build the Northern Powerhouse. Lets hope Bojo manages it.

He will manage it the way he's managed the pandemic and the garden bridge before it.

[Lance]

What an absolutely horrible product. A 25 year at a normal rate will have a lower monthly repayment!!! Why would you choose to pay higher per month for 15 more years? Insane.

utter rubbish.

The monthly payments will be lower.
Take a £100k mortgage with 5.5% interest, payable over 40 years = £515.77 p.m.
over 25 years £614.09 p.m.

[AtW]

utter rubbish.

The monthly payments will be lower.
Take a £100k mortgage with 5.5% interest, payable over 40 years = £515.77 p.m.
over 25 years £614.09 p.m.

100 quid difference is one OK restaurant (outside of London) for two per month, with just one bottle of house wine

Better have a 2nd job than wait 40 years to “own” your place

[Paralytic]

utter rubbish.

The monthly payments will be lower.
Take a £100k mortgage with 5.5% interest, payable over 40 years = £515.77 p.m.
over 25 years £614.09 p.m.

And total amount payable over 40 years, £247,570, versus £184,226 on a 25 year term.

But, I'd agree its good that the market is offering this product, especially with the ability to overpay and the flexibility to exit.

[Paralytic]

100 quid difference is one OK restaurant (outside of London) for two per month, with just one bottle of house wine

Better have a 2nd job than wait 40 years to “own” your place

The people who take out this mortgage are not the people who will spend £100/month on two meals out.

[AtW]

The people who take out this mortgage are not the people who will spend £100/month on two meals out.

Then they certainly can’t afford 40 years of this debt slavery - they should move to Bham where real estate is reasonably priced and it will only require them to have 39 year mortgage