Will the madness ever end? I'm not sure of the best word to describe this. Sickening? Corrupt? Stupid? Expected? Mad? Sad? Or maybe all of the above?
The 57-year home loan - Young people are being offered home loans which can take almost 60 years to pay off.
The 'life-long mortgages' from Britain's biggest lenders are aimed at first-time buyers who are desperate to get on the property ladder.
But last night the deals were described as 'madness' by experts, who warned that while they initially appear attractive due to lower monthly repayments, the borrower can end up paying more than £100,000 extra in interest.
Soaring house prices have forced would-be home-buyers to resort to extreme measures. Young couples are borrowing up to five times their joint salary in the hope of affording a property.
November 09, 2006
The "life long mortgage" - Introducing the 57-year loan in England
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26 comments:
It's amazing how people will fall for this type of loan instead of just renting and waiting things out.
I have to go to the bank every day for work. It's amazing what gets pushed. Even the tellers are trained to tell every customer about the "New 40 Year Loan" the bank is offering. At least once a week I see a person directed out of the teller line to a "loan consultant" to talk about these loans. The average price of a home here is six times the average local family income and people are still lining up to get these loans.
Sheesh!, and all I wanted was a truck loan ($22,000) at an affordable cost, and they went over me like a finetooth comb credit score this credit score that.
Yet i can walk in sign my name on the dotted line and walk out of the bank with a $400,000 MORTGAGE no questions asked no income no credit score nothing...what a system..it desreves to fail and i hope it fails big.
it's a world economy and unfortunatly the sheeple don't seek out world news. this scam has played out in japan, usa and now the uk.
i guess world news has no chance against cable tv and vidio games.
Well if we abolished the fed and gave control back to the treasury we could end the pay with interest scam.
Anyone dumb enough to borrow money on those terms or pay those prices deserves what they get. I blame this madness on an instant gratification culture that treats the mere appearance of wealth as a virtue. This will end badly.
p.s. David In Jax is right. I mean wht is the harm in waiting things out? Sure as hell beats going bankrupt in an effort to keep up with the in debt up to their eyeball Jones.
Funny thing is, if you run an amortization schedule, the payment is probably not much different than a 30 yr fixed.
Well, at least they haven't gotten like the Japanese did in the 1990's with the 3 generation loan (I think it was actually 100 years). You know the one where the parents buy the house and the grandkids pay it off. Now THAT would be extreme.
Okay, I know this sounds a little commie but bear with me. Perhaps we consumers need to fight fire with fire and to organize. The REIC is a highly organized machine and we need to use their methods against them.
These 50 year and 125% mortgages are not the way we want the market to meet our desire to own a home. So we have to communicate to banks that we are not going to accept this.
The poor FBs who are falling into these traps do so because they are marketed to heavily and there is no alternative, there is noone out there marketing heavily in favour of policies and programs that would lead to lower prices.
I'm not really sure how it would work but I do know that if we had solidarity, if people would stop signing up for these outrageously usury mortgage products and stop buying homes then prices suddenly become a lot more reasonable.
I know everyone on HP is already with this program but it would be great if there were a way to get the word out to all those poor suckers signing their lives away to the banks.
John F. Kennedy once said, and I'm paraphrasing here, "the consumer is the only man who doesn't have a high-powered lobbyist representing his interests in Washington - I intend to be that lobbyist."
Keith, come back to America - be our lobbyist!
50 year mortgages are now heavily advertised on the radio here (Colorado). The scary thing is that when people get a bad idea into their head, they're convinced of its merit, and they have no interest in hearing advice that goes against their beliefs.
We had a buyer a few months ago who insisted on a toxic mortgage, and despite the articles we sent her, despite our lenders advice to not go with this type of mortgage, she insisted. We showed her amortization schedules, how her payment was only low for a short period, and how it would swamp her when the time came to sell the house. She got extremely agitated with us for trying to counsel her away from a bad loan and threatened to use another lender and realtor if we wouldn't give her what she wanted.
The only thing we could do was document the repeated attempts to disuade her from the toxic loan and wish her good luck.
I wonder if it ever occured to these young, first time homebuyers that maybe its o.k to not own a home?
Their parents should tell them that its not manditory to own a home to be happy.
A 50 year mortgage has a higher payment than a IO with the same interest rate.
An IO is basically an infinite year mortgage.
And the kids don't have to pay on it....if the house is less than the mortgage, the bank would have to sue the estate to get paid.
So I don't know what the attraction is for a 50 year. Just do an IO.
And what is the difference between that and renting for fifty years?
At least in europe most people own homes for generations and they are built to last at least 100 years.
I hardly think that a 50 years loan is any worse than a 30 year loan. If you stay there 30 years so what? Or 50? Or if you sell after 10 years?
People live longer too and will have to work longer so what does it matter?
Who wants to buy in England? The property is overpriced and the Muslims will be running the place by the time the loan is paid off.
Grandma wears a burqa and she is not even Muslim.
Kweefer: Don't buy a house in soon-to-be Muzzyland.
The banks want to own these suckers for 57 years. People are so stupid. They can't see that economic and political events happen in cycles. Like the Tuesday's election.
The few white women left in England in 57 years will be running for their lives since they will be gang-raped by wolf-packs of young, angry Muslim teenagers.
Don't worry, they will learn to love it. They just need to get a real good taste of that diversity first.
:they will be gang-raped by wolf-packs of young, angry Muslim teenagers.
There'll be angry white muslims by then because they'll be no original white gangs anymore (see "The Warriors" where whites were in gangs run by black and hispanic leaders). The gangs of Sylvester Stallones, Kurt Russells, etc will be a thing of the past.
Those stupid white c*nts are better off smoking muzzie dicks than crack pipes anyway.
The Victorians are rolling over in their graves over what has become of England now that she lets in these lesser breeds.
Dummies will learn why racism is not such a bad idea. A useful survival mechanism for tens of thousands of years.
Why did the Europeans of the 700's fight so hard to keep the Muslims out? Their learning now!
The few white women left in England in 57 years will be running for their lives since they will be gang-raped by wolf-packs of young, angry Muslim teenagers
***************
Many muslim men are frustrated homosexuals. So maybe it's not the woman that need to worry.
You Brit guys have been so dehumanized by the feminist agenda that you no longer have the will to defend the females or your country against invaders.
I just started reflecting on the U.S. southern border. DOH!
Keith, come back to America - be our lobbyist!
Again such hate against muslims. Torn as I am about that religion I have to look past the religion to the individual and there are billions of descent muslims.
A lot of the faith of Islam is rational, fair, seeks justice, promotes an equitable and free society while the other part is stuck in the dark ages (instead of the golden age of Islam).
If I have a problem with Islam it is the same with ALL RELIGION that believes they ALONE have the TRUTH. All such teachings leads to fundamentalism and radicalism. The great thing about paganism is that the idea that "out of the ONE came MANY" and polytheist didn't mean polydeist. They believed One source many manifestations. This could lead to more tolerance and less war over religion (they had enough over terriroty and power).
So if there is a problem it is not with "There is no God but ALLAH" but with there is no prophet but Muhammed meaning only his way is the way and all others are infidels and deserve death. Even though moderate Islam teaches that there is "no coercian in matters of faith" we something totally different in practice. This conflict isn't confined just to ISLAM but between any theocratic religion (Juadaism, Christianity, Islam) as the fundamental teachings are opposed to a secular society since they all believe that GOD will rule the earth and his LAWs and TEACHINGs are SUPREME and as such how can man do anything other than submit (Islam).
The problem in the west is the idea that "free speech" should be protected at all cost and that anything goes. Sorry, HATE speech is not protected. You can deny the holocaust but you can't call for the extermination of a people. You can not preach violence, jihad, war, against any religion or people. You can't shoult "fire" in a crowded theater with inpunity. All these fundamentalists that preach hate wether christian, muslim or other need to be arrested. Any hate crime should be met with the death penalty.
Islam is the only religion that has not reconciled with modernity.
That's why we need to NUKE it, like we did the other death cults - Shintoism 1945, Southern Gentlemanism 1865.
Ayatollahism 2007.
You forget that we in the west are 200 years ahead of them. We had our reformation after years of religious wars in Europe and gross intolerance and medevil attitudes.
Islamic countries are just waking up to the modern world and need their own Reformation, not anihilation. Kuwait, Bahrain, Dubai, Qatar, are quite modern and progressive and breaking with the past. Islam is still very much a part of their identity but they are not as radical or threatening as Iran or as backward as Syria.
Of course Iraq under Sadaam was the most secular and women had the most rights. To bad we interfered and over threw him. Instead of isolating him and imposing useless embargos that made the Russians and the French rich as well as Sadaam's cronies we should have made peace, helped rebuild Iraq after the first gulf war and things would be a hell of a lot better today.
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