The average term of a mortgage in Sweden is 140 years!

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hibadelic said:
Isn't an interest only mortgage basically a term of infinity? Or is there always a clause that you have to pay it off within a certain timeframe?
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I've done some further reading since then and it sort of a bit like that but sort of not. In a British interest only mortgage, at the end of the term you have to pay up the capital. Which is why if house prices go down, people with they mortgages are stuffed. It seems like in Sweden, you don't have to pay any capital once the capital owed is less than 70% of the value of the property - so people just delay it forever and pay up at such a piddling rate that it would take the average punter 140 years to pay off. So, like the vanguard of modernity they are, they bequeath their kids debt rather than an asset. Now the legal beaks are forcing them to get the job done in a mere 105 years. Mental. The Japanese do this as well incidentally (ie 100 year mortgages).

I was also surprised to learn that our esteemed egalitarian Swedes are amongst the most indebted citizenries around - coming in at number 6 on the oecd list of household debt. Norway are number 3 and Denmark number 1.

https://data.oecd.org/hha/household-debt.htm

Perhaps we have a reason for these countries topping happiness indices of which I was previously unaware - they live high on the hog on the never never !
 
egb_hibs said:
I've done some further reading since then and it sort of a bit like that but sort of not. In a British interest only mortgage, at the end of the term you have to pay up the capital. Which is why if house prices go down, people with they mortgages are stuffed. It seems like in Sweden, you don't have to pay any capital once the capital owed is less than 70% of the value of the property - so people just delay it forever and pay up at such a piddling rate that it would take the average punter 140 years to pay off. So, like the vanguard of modernity they are, they bequeath their kids debt rather than an asset. Now the legal beaks are forcing them to get the job done in a mere 105 years. Mental. The Japanese do this as well incidentally (ie 100 year mortgages).

I was also surprised to learn that our esteemed egalitarian Swedes are amongst the most indebted citizenries around - coming in at number 6 on the oecd list of household debt. Norway are number 3 and Denmark number 1.

https://data.oecd.org/hha/household-debt.htm

Perhaps we have a reason for these countries topping happiness indices of which I was previously unaware - they live high on the hog on the never never !
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I wasn't aware of that either. As a % of net disposable income sounds a well sketchy thing to calculate at all, never mind internationally but I don't doubt there's something in it.
 
egb_hibs said:
I've done some further reading since then and it sort of a bit like that but sort of not. In a British interest only mortgage, at the end of the term you have to pay up the capital. Which is why if house prices go down, people with they mortgages are stuffed. It seems like in Sweden, you don't have to pay any capital once the capital owed is less than 70% of the value of the property - so people just delay it forever and pay up at such a piddling rate that it would take the average punter 140 years to pay off. So, like the vanguard of modernity they are, they bequeath their kids debt rather than an asset. Now the legal beaks are forcing them to get the job done in a mere 105 years. Mental. The Japanese do this as well incidentally (ie 100 year mortgages).

I was also surprised to learn that our esteemed egalitarian Swedes are amongst the most indebted citizenries around - coming in at number 6 on the oecd list of household debt. Norway are number 3 and Denmark number 1.

https://data.oecd.org/hha/household-debt.htm

Perhaps we have a reason for these countries topping happiness indices of which I was previously unaware - they live high on the hog on the never never !
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Not quite as cut and dried as that Eeeg. People with those mortgages normally take out an endowmwnt policy or a term assurance policy which should theoretically [in the case of an endowment] and definitelly in the case of term assurance, pay out enough at the end of the term to cover the cost of the capital repayment. Anyone who took out an interest only mortgage without the safety net is an idiot.

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hibadelic said:
I wasn't aware of that either. As a % of net disposable income sounds a well sketchy thing to calculate at all, never mind internationally but I don't doubt there's something in it.
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See above.
 
Dub said:
Not quite as cut and dried as that Eeeg. People with those mortgages normally take out an endowmwnt policy or a term assurance policy which should theoretically [in the case of an endowment] and definitelly in the case of term assurance, pay out enough at the end of the term to cover the cost of the capital repayment. Anyone who took out an interest only mortgage without the safety net is an idiot.
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A lot of them about though D. While this is what people should be doing, today's interest only mortgages are very definitely different to the endowment ones we used to have back int day. There is no demand for proof of an investment vehicle to pay off the capital at end of term, you really do just pay the interest.

Lots of people go for these intending never to own the house but to sell it along the way and take the capital appreciation. It's nuts and it's tomorrow's clearly signposted disaster waiting to happen.
 
egb_hibs said:
A lot of them about though D. While this is what people should be doing, today's interest only mortgages are very definitely different to the endowment ones we used to have back int day. There is no demand for proof of an investment vehicle to pay off the capital at end of term, you really do just pay the interest.

Lots of people go for these intending never to own the house but to sell it along the way and take the capital appreciation. It's nuts and it's tomorrow's clearly signposted disaster waiting to happen.
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That is nuts M. Gambling on the value of your flat when you come to sell it probably seemed the ideal thing to do when prices were steadily rising and some knob-end estate agent was ramming the pen in your hand but as we have witnessed - house prices can go down as well as up. I'm pretty glad really that we were more or less forced to have a repayment vehicle running alongside the mortgage even though it seemed like an imposition at the time.
 
[MENTION=4263]Dub[/MENTION]

I'm pretty old fashioned on this - I think all mortgages should be repayment and restricted to 2 or 3 times salary. All this madness has achieved is house price inflation to no ones benefit, and lenders exposed to borrower defaults.
 
egb_hibs said:
[MENTION=4263]Dub[/MENTION]

I'm pretty old fashioned on this - I think all mortgages should be repayment and restricted to 2 or 3 times salary. All this madness has achieved is house price inflation to no ones benefit, and lenders exposed to borrower defaults.
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Couldn't agree more old chap. 2 times my salary and 1 times Mrs Dubs salary was as far as the mortgage company would go back in the day which meant you really needed a deposit. The only people guaranteed to make money now are the Estate agents [who have to take a lot of the blame for artificially inflating house prices]. Madness mate.
 
Dub said:
Couldn't agree more old chap. 2 times my salary and 1 times Mrs Dubs salary was as far as the mortgage company would go back in the day which meant you really needed a deposit. The only people guaranteed to make money now are the Estate agents [who have to take a lot of the blame for artificially inflating house prices]. Madness mate.
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It literally doesn't benefit anyone else as far as I can see, other than people buying houses not to live in, or who downsize. Even people who inherit a house lose out if they have to split it with a sibling. You'd be better inherited a 100k house, split it with a sibling, and have to find another 50k to buy a similar house for your self, than to inherit it at at 200k, get half of that, and have to find 100k to buy a similar house.

Osbornes stealth war on houses as investments is one of his few measures I think should win support from all over. More should be done but we are in such a bind now that we could bankrupt the country if he pushes too hard. Total mess and I'm surprised we haven't got 100 year mortgages here yet.
 
egb_hibs said:
It literally doesn't benefit anyone else as far as I can see, other than people buying houses not to live in, or who downsize. Even people who inherit a house lose out if they have to split it with a sibling. You'd be better inherited a 100k house, split it with a sibling, and have to find another 50k to buy a similar house for your self, than to inherit it at at 200k, get half of that, and have to find 100k to buy a similar house.

Osbornes stealth war on houses as investments is one of his few measures I think should win support from all over. More should be done but we are in such a bind now that we could bankrupt the country if he pushes too hard. Total mess and I'm surprised we haven't got 100 year mortgages here yet.
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I'm toying with the idea of becoming a downsizer. It goes against the grain really to back Ozzie on anything he does but I agree with you on this one although I have a couple of mates who aren't overly chuffed given they have 20 something and 40 something flats respectively.
 
I was looking at mortgages for my kids a couple of years ago.

Without going through the research rigmarole again.

Mortgages in the UK run on terms upto 40 years. That was the max I found. Different companies also have maximum ages the mortgage can run for. Many were as high as 70 but there was one at 90 years old.

And yes, interest only was as common as muck.

What's killing it for our kids is the deposit needed. In the days of 2 or 3 times salary it was easy enough to buy without a deposit and 105% of valuation wasn't impossible.

But with [MENTION=4263]Dub[/MENTION]s mates and their mates buying up all the entry level flats (they too have to start somewhere) and keeping the price of these flats higher than they should be it's making it very difficult for kids.

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PS. These Nordic types need a mortgage for a night out on the lash!
 
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