Wondered how families on lowish incomes can afford that bigger house even with prices rising?
http://www.dailymail.co.uk/pages/liv...n_page_id=1770
Millions of home-owners are being caught in a 'never-ending mortgage trap', a shocking study reveals today.
It warns that a new generation of home-owners face the ghastly prospect of still paying off a mortgage in their 60s and 70s.
The looming crisis has been caused by people changing their mortgage every few years - but never cutting the 'life' of their home loan.
A typical person takes out their first mortgage when they are about 30 and should pay off their 25-year home loan by the age of 55.
But many are taking out a new mortgage every few years, but always taking out another 25-year deal, rather than cutting it to 20, 18 or even fewer years.
Experts warn that it is an 'expensive mistake' which they will regret when they cannot afford to retire even though they are approaching their 65th birthday.
The research, published by the price comparison giant Moneysupermarket.com, said it is a foolish idea which is 'fundamentally flawed'.
Louise Cuming, the website's head of mortgages, said: "Extending the mortgage term is a short-sighted solution which has a long-lasting impact.
"Not only do consumers end up paying significantly more, but they could still be paying off their mortgage at the same time as collecting their pension."
Many home-owners take out another 25-year home loan when they remortgage because it cuts their monthly repayments.
Now you know. Doomed - Eventually.
http://www.dailymail.co.uk/pages/liv...n_page_id=1770
Millions of home-owners are being caught in a 'never-ending mortgage trap', a shocking study reveals today.
It warns that a new generation of home-owners face the ghastly prospect of still paying off a mortgage in their 60s and 70s.
The looming crisis has been caused by people changing their mortgage every few years - but never cutting the 'life' of their home loan.
A typical person takes out their first mortgage when they are about 30 and should pay off their 25-year home loan by the age of 55.
But many are taking out a new mortgage every few years, but always taking out another 25-year deal, rather than cutting it to 20, 18 or even fewer years.
Experts warn that it is an 'expensive mistake' which they will regret when they cannot afford to retire even though they are approaching their 65th birthday.
The research, published by the price comparison giant Moneysupermarket.com, said it is a foolish idea which is 'fundamentally flawed'.
Louise Cuming, the website's head of mortgages, said: "Extending the mortgage term is a short-sighted solution which has a long-lasting impact.
"Not only do consumers end up paying significantly more, but they could still be paying off their mortgage at the same time as collecting their pension."
Many home-owners take out another 25-year home loan when they remortgage because it cuts their monthly repayments.
Now you know. Doomed - Eventually.
Comment