Interest Only Mortgage?
Discussion
The Japanese go so far as to use 100 year mortgages. 
http://homeguides.sfgate.com/longest-mortgage-7677...
http://homeguides.sfgate.com/longest-mortgage-7677...
Sarnie said:
What is her annual salary?
Saw her this weekend and got more info, her salary I am not 100% sure as she has a funny bonus structure however the last 12 months she said she earned £37,000, but says her base is £28k. She says that from her base salary alone, after all bills, direct debits and neccesary costs come out she has around £1,000 to play with which to this date has gone on shopping sprees, holidays, luxurys etc. From this she is happy to let £500 go into the house and maybe more if it really made a difference. boombastictiger said:
Sarnie said:
What is her annual salary?
Saw her this weekend and got more info, her salary I am not 100% sure as she has a funny bonus structure however the last 12 months she said she earned £37,000, but says her base is £28k. She says that from her base salary alone, after all bills, direct debits and neccesary costs come out she has around £1,000 to play with which to this date has gone on shopping sprees, holidays, luxurys etc. From this she is happy to let £500 go into the house and maybe more if it really made a difference. "to be able to afford a £265k mortgage in the normal way Eg they'd need earnings of at least £55k"
boombastictiger said:
Saw her this weekend and got more info, her salary I am not 100% sure as she has a funny bonus structure however the last 12 months she said she earned £37,000, but says her base is £28k. She says that from her base salary alone, after all bills, direct debits and neccesary costs come out she has around £1,000 to play with which to this date has gone on shopping sprees, holidays, luxurys etc. From this she is happy to let £500 go into the house and maybe more if it really made a difference.
To be honest, this doesn't add up either. That implies it costs her £1,500 a month to live at her parents house, which is obviously totally insane. Separately, she doesn't have the income to take the mortgage. It sounds like she has no savings to add to the deposit and it also sounds like she is haemorrhaging cash in a monthly basis. But then it does read like she has had to excellent teachers in the art of not saving, not planning and living beyond ones' means.
If all three of them want to continue living in the same property until they die off one by one then is there an option for all three of them to combine their incomes to remortgage at a sensible rate and start paying down their debt? Plus have insurance policies on the individuals to cover Any loss of their income when they die?
Obviously she is a professional spinster and she and her parents have decided that she won't ever be having any relationships or children and that her life is to be dedicated to keeping her parents in a lifestyle they cannot personally afford and to wiping their backsides when they stop being able to do it for themselves?
It would just be so much more sensible for the parents to actually act like parents and not the children and sell up to clear their debt and then give a chunk of the equity profit to their daughter to let her buy her own home?
But this is a very interesting thread as although I'm very surprised to see 70 year olds having the problem of not bothering to pay down their mortgage debt during their working life, I suspect that it is going to be an all too common issue among my generation who have been the true consumers of interest free mortgages with no savings plan and the money that should have been saved used for living the dream.
There are mortgages with people in her parents' situation, as my in-laws are in a similar issue. It is possible to get mortgages where no interest will be paid, but is instead added to the loan balance and when the owners pass away, the mortgage is paid off with the proceeds of the house sale.
I pay just over £550 a month on a £100k mortgage at something like 1.4%, no way on earth is she going to be able to firstly get a £265k mortgage earning £37k (my salary is just below that) and secondly only realistically being able to afford £500 or so a month means she'll be looking at a mortgage of not much more than £120k
Nickyboy said:
I pay just over £550 a month on a £100k mortgage at something like 1.4%, no way on earth is she going to be able to firstly get a £265k mortgage earning £37k (my salary is just below that) and secondly only realistically being able to afford £500 or so a month means she'll be looking at a mortgage of not much more than £120k
I think the idea is to see what options are available if incomes were combined, would a mortgage be feasable then or high risk due to age of parents.DonkeyApple said:
To be honest, this doesn't add up either. That implies it costs her £1,500 a month to live at her parents house, which is obviously totally insane.
Separately, she doesn't have the income to take the mortgage. It sounds like she has no savings to add to the deposit and it also sounds like she is haemorrhaging cash in a monthly basis. But then it does read like she has had to excellent teachers in the art of not saving, not planning and living beyond ones' means.
If all three of them want to continue living in the same property until they die off one by one then is there an option for all three of them to combine their incomes to remortgage at a sensible rate and start paying down their debt? Plus have insurance policies on the individuals to cover Any loss of their income when they die?
Obviously she is a professional spinster and she and her parents have decided that she won't ever be having any relationships or children and that her life is to be dedicated to keeping her parents in a lifestyle they cannot personally afford and to wiping their backsides when they stop being able to do it for themselves?
It would just be so much more sensible for the parents to actually act like parents and not the children and sell up to clear their debt and then give a chunk of the equity profit to their daughter to let her buy her own home?
But this is a very interesting thread as although I'm very surprised to see 70 year olds having the problem of not bothering to pay down their mortgage debt during their working life, I suspect that it is going to be an all too common issue among my generation who have been the true consumers of interest free mortgages with no savings plan and the money that should have been saved used for living the dream.
Tbh i think they are all beginning to accept that they will have to let the house go. The parents enjoyed 25 years of living there developed and raised a family around the house so there is a lot of sentimental value and history, but thats a risk they took. My friend has lived a good lifestyle shes not lazy either shes been working since 15 and shes now nearly 30, but i think at the same time she does not want the house and would prefer to rent to avoid the debt rather than a mortgage. Her personal life(family goals) i think she is still deciding on shes not sure if she wants kids etc. Separately, she doesn't have the income to take the mortgage. It sounds like she has no savings to add to the deposit and it also sounds like she is haemorrhaging cash in a monthly basis. But then it does read like she has had to excellent teachers in the art of not saving, not planning and living beyond ones' means.
If all three of them want to continue living in the same property until they die off one by one then is there an option for all three of them to combine their incomes to remortgage at a sensible rate and start paying down their debt? Plus have insurance policies on the individuals to cover Any loss of their income when they die?
Obviously she is a professional spinster and she and her parents have decided that she won't ever be having any relationships or children and that her life is to be dedicated to keeping her parents in a lifestyle they cannot personally afford and to wiping their backsides when they stop being able to do it for themselves?
It would just be so much more sensible for the parents to actually act like parents and not the children and sell up to clear their debt and then give a chunk of the equity profit to their daughter to let her buy her own home?
But this is a very interesting thread as although I'm very surprised to see 70 year olds having the problem of not bothering to pay down their mortgage debt during their working life, I suspect that it is going to be an all too common issue among my generation who have been the true consumers of interest free mortgages with no savings plan and the money that should have been saved used for living the dream.
Bottom line is that her parents house is worth 500k-600k maybe more as it has been developed (loft, annex) so there will be a fair chunk of profit when sold and I have said to them all that they could live relatively luxury lives if they downgraded or moved further out paid for a house outright or took on a much smaller mortgage. They would owe no debt and all money would be for themselves. They could own a nice house, and with their salaries travel every other month, business class...Not many have that option.
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