Reply to: Mortgaged until death

[xoggoth]

I'm getting sick of 5* hotels and I'm missing those 3* dives

Paid my mortage off decades ago but was too much of a cheapskate to even do 3* when I was still contracting.

[CryingSheep]

In Switzerland you can keep you mortgage going so long as your income allows, right up to death. If your heirs can pay the mortgage, then they can just keep going. It's unwise to pay off all your mortgage, since there is tax relief on interests payments, imputed rent tax, and wealth tax. Better to use the money elsewhere.

Precisely this! Plus everytime you remortage (with extra borrow) that extra is tax free money in your pocket!

[DoctorStrangelove]

imputed rent tax

Which explains the Schedule A Income Tax receipts I found in my grandfather's records, a man with no income paying tax.

A neat trick if you can achieve it.

He died shortly before Selwyn Lloyd abolished Schedule A in 1963.

[NotAllThere]

So Sweden recently reduced their max mortgage term to 105 years...

Telegraph: Sweden cuts maximum mortgage term to 105 years (the average is 140)

In Switzerland you can keep you mortgage going so long as your income allows, right up to death. If your heirs can pay the mortgage, then they can just keep going. It's unwise to pay off all your mortgage, since there is tax relief on interests payments, imputed rent tax, and wealth tax. Better to use the money elsewhere.

[Whorty]

Was at a funeral last week, chap just paid of his mortgage at 52, not had a holiday in 3 years to do so, heart attack and long time deed

Explain the benefits of not having a mortgage ?


Sent from my iPhone using Contractor UK Forum

Paid mine off late 30's. Still alive 10 years later. I'm seeing big benefits

[DealorNoDeal]

We paid our mortgage off 20 years ago when interest rates were a lot higher*.

It made a lot more sense then but I'd still prefer to be mortgage free even though (interest only) mortgages are dirt cheap now.

I wouldn't want to go into retirement saddled with a whopping mortgage.

1. What if interest rates do go up? Even an extra couple of % could be crippling.
2. Would you still be able to remortgage, to take advantage of a lower rate, if you are on a reduced income?
3. If remortgaging is difficult, then maybe it would be harder to move house?

*I was going to say normal but feck knows what normal is anymore.

[Gibbon]

Was at a funeral last week, chap just paid of his mortgage at 52, not had a holiday in 3 years to do so, heart attack and long time deed

Explain the benefits of not having a mortgage ?


Sent from my iPhone using Contractor UK Forum

Strange I'm 52 and paid my mortgage off last year and I haven't had a heart attack, must be the exception, all the extra disposable income is getting me down now though, I'm getting sick of 5* hotels and I'm missing those 3* dives I used to use whilst overpaying the mortgage.

[Hobosapien]

Explain the benefits of not having a mortgage ?

Same reason buying and paying off before retirement is usually a better idea than renting ... the state pension or pension provision of a large percentage of the UK population would mean they'd struggle to pay rent or mortgage in retirement.

So now there are pensioner mortgages in the pipeline (if not already here in terms of the various forms of equity release) where you sign over the house and have the option of attempting to pay the debt off before death if you want to leave the property for inheritance.

Don't some countries already have multi-generational mortgages so the kids inherit debt if they want a place they can pretend they own?

On the plus side, there's a big business opportunity coming for those that create AI worker bots so you can 'work from home' to pay off the debt (or wait for a pension when they keep proposing higher retirement ages ) long after your body has physically given up on any notion of working as it currently stands. i.e. they want to keep you tied up with debt until and beyond you die but you can have an AI bot that will work just as long. The kids will love it.

[CheeseSlice]

So Sweden recently reduced their max mortgage term to 105 years...

Telegraph: Sweden cuts maximum mortgage term to 105 years (the average is 140)

"The average term is reported to be 140 years. This meant many people who inherited property but who could not afford to take on the mortgage debt had to sell up.

Swedish banks were quoted in the local press as opposing the move".

[BR14]

I’ll send you some pics to decorate your cubicle. With the post brexit labor laws i’m pretty sure you won’t be able to leave it.

My office doesn't have a cubicle.
and it's perfectly well decorated.

just go.

[GigiBronz]

at last!

don't let the door slap yer arse on the way out.

I’ll send you some pics to decorate your cubicle. With the post brexit labor laws i’m pretty sure you won’t be able to leave it.

[Paddy]

40-year mortgages: Now you can borrow into your 80s | Daily Mail Online

This, zirp, interest only and high loan to earnings ratio means big house price rises for ever more.

The word 'mortgage' comes from Old French, and Latin and literally meant 'death pledge.'

[xoggoth]

Mortgaged until death

Probably after death. Given the cost of funerals these days you will have to take out a mortgage to pay for your coffin.

[BR14]

I am heading for the mountains...

at last!

don't let the door slap yer arse on the way out.

[GigiBronz]

40-year mortgages: Now you can borrow into your 80s | Daily Mail Online

This, zirp, interest only and high loan to earnings ratio means big house price rises for ever more.

Soon they will allow you to pay your mortgage from the pension pot.

Industry will put a bunch more "property development" shows on tv pushing the frenzy to the next level.

Society will be divided in home owners and slaves. "landlord" term always seemed a bit off, but there might have been some truth in it.

I am heading for the mountains...