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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to be irritated that people on here assume mortgage means security

93 replies

Purplepoodle · 27/09/2014 17:34

Several times on aibu people have gotten very uppty with people who have mortgages. They seems to assume it means instant security, an asset ect. Its bugs me as I have been called out myself in threads for commenting and having a mortgage BUT I'm in huge negative equity, I can only afford to pay the interest which is likely to be the situation for a good few years. So no I dont feel privileged that I have a mortgage, it feels like a chain around me kneck.

OP posts:
Original poster
Purplepoodle · 27/09/2014 17:34

Neck that is

OP posts:
jacks365 · 27/09/2014 17:45

It may feel like a chain around your neck but you can't be forced to move every six months having to potentially find 2k in fees and expenses each time which is security of a kind and house prices will rise so one day it will be an asset. It may not feel like a much right now but it will in time.

Got99problems · 27/09/2014 17:47

We've had a tough patch financially and it is scary having a mortgage at times like that. At least with renting if it all goes tits up you can qualify for housing benefit. On the other hand so many of my friends that rent end up having to move every year or two, which I'd hate. Overall a mortgage does mean the security of not being given 2 months notice to find another house (unless you get repossessed, of course).

Timeforabiscuit · 27/09/2014 17:50

I second jacks, I'm really sorry things are bad for you at the moment - it sounds like you are literally stuck, but I can remember the terror (and I don't use the term lightly) when we were told to leave with a months notice.

At least with a mortgage you pay = you get somewhere permanent to live.

EhricLovesTheBhrothers · 27/09/2014 17:53

It's security in that as long as you pay the mortgage you have a secure home.
So yes, security.

needaholidaynow · 27/09/2014 17:56

This reply has been deleted

Message withdrawn at poster's request.

TeracottaTurtle · 27/09/2014 17:57

What others have said...it is security, as long as you pay. As long as you don't miss payments you can live there for the rest of your days.

You can be a renter with the best payment history ever and be asked at any time to pack your shit and leave with 4 weeks notice.

Surely you can see the difference op? Even if you are in negative equity.

needaholidaynow · 27/09/2014 17:58

This reply has been deleted

Message withdrawn at poster's request.

fluffyraggies · 27/09/2014 17:59

I've done both and there are good and bad with each.

Mortgage - you don't really own your house till it's paid off. There is often a lease on the land you have keep an eye on. Sometimes there's ground rent/maintenance if you're on an managed estate. If you cant pay the mortgage the bank takes your house back. With ALL repairs plus life assurance it's very expensive and you stand to loose everything if it goes wrong. If you cant afford it you cant decide to just move on.

Renting - yes, you're paying someone else to live in their house, but they're liable for all repairs and maintenance. If the boiler breaks down on xmas eve you call the land lord - he pays. (or that's how it should be). If you want to move on, for whatever reason you just give the agreed notice and off you go. Biggest down side is the risk of being moved on with short notice. However i've always had 'long term rent' and mad sure to be been very closely in touch with my land lords (and their plans) so as yet it hasn't happened to me.

With our money situation at the mo we couldn't afford to buy.

KingJoffreysBloodshotEye · 27/09/2014 18:01

I feel much more secure now we own/have a mortgage.

When renting I lived in fear. Could be given any notice to leave, other people had keys. Also had the issue of the LL sending some dubious people out to do repairs and only ever doing temporary repair work so stuff would break again within weeks.

At least here I can get a proper repairman out to fix things.

Mortgage is also half what the rent was. So if one of us became unemployed we'd still manage. Couldn't have managed while renting.

fluffyraggies · 27/09/2014 18:01

Meant to add i've honestly had more sickening sleepless nights as a 'home owner' than a 'renter'.

MissWimpyDimple · 27/09/2014 18:09

Sorry but for most people Mortgage= security. I accept that a few people are in negative equity but for most this is not the case.

Around here the average property has made more per annum than the average full time worker Hmm

Whoopsadazy · 27/09/2014 18:20

Even if you're in negative equity, the second you make that final payment, you DO have lifetime security - you never need to pay another penny in rent/mortgage ever again. That gives so much freedom in terms of your work/income options.

I don't have the statistics to hand, but I'd imagine that the percentage of people who are in negative equity makes up a small portion of mortgage payers - I.e. Only those who bought at the very height of the bubble (mixed metaphor there?), so it is probably reasonable to assume that most people with a mortgage do have some equity/security.

For me personally, having equity in my property gives me such a sense of relief. If I lost my job tomorrow I could sell below market value and probably buy a smaller house outright or live comfortably off the equity for a few years.

OwlinaTree · 27/09/2014 18:25

I agree with other posters, it's secure in that as long as you make payments you can't be asked to move.

rainbowinmyroom · 27/09/2014 18:32

Let's see, no chance of being asked to move on every 4-6 months, no rip off merchant letting agents, no humiliating inspections every few months, you can decorate how you please, hang things on the walls, have a pet, never worry about having a place lined up to move in and then the LL decides the day before to let to a friend instead, no rent hikes every six months.

Original poster
Purplepoodle · 27/09/2014 18:41

I'm never going to make the final payment. The best we can hope for is selling at some point with no debt.

OP posts:
EhricLovesTheBhrothers · 27/09/2014 18:49

Yeah and a house you get to live in with no threat of being kicked out with 2 months notice, which you can decorate as you wish, have pets, settle your kids in school in confidence, take in a lodger, etc etc etc...

It's total security compared to privately renting. So what if you don't make a profit? You're in a better situation than renters unless you actually lose money on the sale, and if you stay put, you won't. Plus, many mortgages especially in the south east are cheaper to pay each month than the equivalent house would be to rent.

PhallicGiraffe · 27/09/2014 18:53

Actually a mortgage is pretty secure. I have a house that is mine forever and I can do what I want with it. I have an affordable mortgage that is far cheaper than the equivalent rent, and one day I will own it completely with nothing to pay for it.

x2boys · 27/09/2014 18:59

Mortgage no I had a mortgage if you don't keep up repayments you lose your home also if the boiler goes for example you have to pay to fix it not everybody has that kind of money just lying around ,private renting the landlord has to be responsible for repairs but you can be asked to leave with little notice ,social housing in some cases can be the securest form of housing you can't just be asked to leave council are liable for repairs , if you lose your job housing benefit covers the rent .

mrstiggy · 27/09/2014 19:00

I am happier with a mortgage than rent in terms of security. Also happy with the fact that it's mine to do as I please. Sometimes I wish I had someone to pay the repairs, or that I had the freedom to move without the expense (yes rental agent fees are huge but solicitors and estate agent fees arnt a pittance either) but I know that 'freedom' comes with a price and at least now I would only be moving on my terms.

dreamingofsun · 27/09/2014 19:05

its great as long as you can continue to pay it. Its very scary once they start sending the letters about non-payment because you have lost your work contract. That means you are going to be homeless

ilovechristmas1 · 27/09/2014 19:05

i have done both

but even when my mortgage rate was 13% i still prefered a mortgage

now its all paid of having the security of never being homeless is priceless

because in a few years time i can sell my 3bed detached (approx 240k) downside to maybe a 1bed (£120k,then i can really enjoy myself.help kids with Uni,decent car or just have a bloody blast

so if you keep paying the mortgage in years to come i think you do reap the benefits

MyFairyKing · 27/09/2014 19:05

For most people, a mortgage is more secure than private renting.

Topseyt · 27/09/2014 19:13

Many years ago, back at the start of the 1990s, my husband and I bought a two bedroom flat which ended up in negative equity.

I think that the best thing we did was to take a long term view of it. The negative equity would not last forever. After our first baby was born in 1995 we knew we would have to move. Eventually, the solution hit us. We rented out our flat (not too hard, it was on the Isle of Dogs in London), and the rent we received more than covered the mortgage payments.

Using all savings that we had, plus a gift from my parents, we managed to buy a much more suitable house outside of London, whilst continuing to receive rental income to finance the flat. Eight or nine years later, we sold said flat for more than twice what we had originally paid for it. It enabled us to buy the current 4 bedroom detached house we currently live in, which we probably couldn't have afforded otherwise.

I realise that there was an element of luck in my situation (believe me, we are not wealthy) in being able to cobble enough together to get out without selling, but I think it is important to keep some perspective here, try to take a long term view and try not to let negative equity panic you.

Bellabutterfly2014 · 27/09/2014 19:14

We are stuck in a situation where we could probably get a mortgage but we have no deposit and as we are stuck in the rental trap, are unlikely to have a change in circumstance unless someone passes away and leaves us something or we have a lottery win.

Lots of our friends are in the same situation tho - I'd live to have my own home, landlord inspections are a pain !!!