To think having a house with a mortgage is not 'owning your own home'

[easternuts]

We had a mortgage for 30 years before paying it off recently on our modest home. Now we consider ourselves home owners.

Dd rents because she doesn't want to pay the bank more in interest than the cost of her rent is. Yes her rent can go up but so can your mortgage.

I've had friends of mine make snide comments that dd is going on another holiday when she doesn't own her own home. This is as opposed to their own children who have recently bought with 95% or 90% mortgages in a part of the country where a 3 bed house is less than £150k.

AIBU to think that you don't own your own home just because you have a £15k down payment. DD has far beyond what is needed for a deposit but it makes zero sense in central London at present.

On what basis does being ignorant as to how mortgages work equate to “financial prudence”?

And actually you don’t even need to have made the first debt payment to legally own the property. That occurs when you pay for the house (including utilising any Mortgage monies) and ownership transfers to you. Paying the loan for the house is a separate legal obligation.

Renting is the best option for....
People on contract work in various areas of the country.
Medical staff on rotation across various hospitals according to speciality
People going through a divorce who haven't settled their finances
People who have yet to decide on an area to live and don't want to commit until they decide

Renting is sometimes the best option

Inheritance tax kicks in after a few hundred thousands - it's 40% over that threshold, but even so, a FAR better thing to leave ones child/ren than a big fat 100% of zero from renting.

Renting is a really nuts move if one can afford to buy with a mortgage.

Renting is 'dead' money- You are making someone else's lives rich for them.

I knew a woman who ''Didn't want to be tied to a mortgage'' {I think housing benefit paid her rent} but then she really regretted it when the landlords changed and they wanted to put the rents up...had she bought in her twenties when houses were much cheaper in real terms she'd have been much better off.

I totally agree OP. People who bang on about having “their own house”. Actually it’s the bank’s house.

Wow. People must honestly love to sound stupid.

20 pages in on how your viewpoint is complete bollocks and you still put it.

It is not "owning your own home" because you are not free to do with it what you want and retention of it is dependent on conditions like paying the mortgage.

OTOH it is less restrictive than renting.

People I think with mortgages like to feel superior to the mere renters. So they don't react particularly happily when reminded that they are not homeowners. More effectively renters, albeit with different terms to a standard renter.

Personally I think mortgages should be banned. Which of course would decrease property prices hugely. But the majority of people seem strangely wedded to the idea that they should pay massive amounts of money for what is pretty low quality housing it the UK.

It's a bit like, shut up about the miserable amount of land I'm getting, shut up about the poor house build quality, shut up about the onerous leasehold terms, just shut up and take my (borrowed) money.

That's such a weak argument.
Capital diminishes, mortgages end, as long as one pays the mortgage , one won't lose the house/flat.

One has to live somewhere, so why not in one's own house/flat? {But beware service charges in flats}

Makes far more sense than paying rent which is money down the drain.

Property prices as long as one chooses area wisely will {probably} continue to rise.

Anyone in a position to buy really will be better off buying than renting.

You’re wrong as well

Where to start with this one 😂

sounds like jealousy that you don’t have your own home mortgaged ot not

It is not "owning your own home" because you are not free to do with it what you want

such as?

my house is mortgaged and I’ve been able to do exactly as I want with it.

any restrictions there may be on a home owner’s activities would generally come from either conditions in the title or legal restrictions eg planning. Any restrictions by the lender would be limited to ensuring that their security isn’t devalued, destroyed, severely damaged.

As for “banning mortgages” where would everyone live? As presumably this would also apply to private landlords, and you can’t have failed to notice the lack of social housing in this country.

I assume you choose to rent?

''Freehold and free'' is what to look for when buying a house - I resented paying rent, but never resented making a mortgage payment.

Mortgages end.

Rent is never ending.

I wasn't even going to bother.

I've just nearly killed myself weeding my not my front garden. Got to a point and thought fuck it! I'm going in to ring nationwide, bank holidays over now, they can come do my pissing weeding!

Dear God. You know something...I just can't. I've just come off a thread where someone kept insisting a bar isn't a bar when it's an area where drinks are ordered and served and another where someone writing a will was akin to accidentally dropping doughnuts on the floor and another where someone said an Easter family gathering is like a BDSM party and congratulations, it seems I do have a limit and I've finally found it. Maybe this post isn't for real but there's so much I wouldn't have thought was real and it is and I've found my limit.

Dear God.

So you believe that banks own 60% of owner occupied houses in the UK? You believe that mortgage holders aren’t home owners?

how do you describe them then? Renters? On a legal form what bid should they tick? They aren’t according to you home owners (either with or without a mortgage) they aren’t renters? I have never seen a category to describe living in a bank owned house?

You borrow money from the bank to BUY the home. The mortgage company/bank are not on the deeds of the house so they don't own it, the person who borrowed the money to buy it is.

Whether you have sourced the money by saving it, inheritance or by raising a mortgage you still buy and own the home. A mortgage just means you owe the bank alot of money and if you don't pay them they can take your assets ( the house ) to recover the money.

I think it's a very well accepted term that "home owner" doesn't necessarily mean the house has been bought outright in cash but that you are the legal registered owners on the deeds of the house.

What restrictions are placed on people who own their own homes, do you think? <fascinated>
People don't react particularly happily to you because you talk complete and utter bollocks.
Not even vaguely plausible bollocks, either. Tragic.

One last try, because I don't know what's good for me... It's like the difference between hiring a car, and taking out a secured loan to buy the car. The car is at risk if you don't keep up the loan payments to your lender, but you do own the car. And it might be a shit car and it might have been a bad purchase, but it's still your shit car because you own it. If you hire the car, you don't.

Landlords also have to maintain their properties - and the costs of this will be passed to the tenants.

Where i live renting is significantly higher than a mortgage.

The bank doesn't own a single penny of the house. I have no idea what type of mortgage advisor you have been seeing but I can tell you that that's rubbish.

The bank loan YOU the money for YOU to buy the house and you have to pay that money back over a period of time. I have a mortgage and can assure you that I am the legal registered owner of my house and no one else.

The only time the bank would own the house is if you stopped making payments then they could reposes the house to get the funds you owe them.

Having a mortgage does not mean that you co own your house with your mortgage provider.

No. I just worked enough to amass enough cash to out compete everyone who used borrowed money and did it on a fairly short timescale.

Sadly not everyone has that option.

Hmmm. Which shall we have. A country where everyone can afford a decent place to live at a price they can easily pay.

Or a country where banks get people to bid up house prices against each other by the banks lending them more so the banks can make more profits.

Hell yes. Give it to me. 20 years of huge interest payments so I can end up living in a place the size of a shoebox that is built to appalling standards and the MD of Big Bank Ltd can make 4 million in share options.

The only people that profit from mortgages are the banks.

It's provocative thinking I admit and a bit too much for most people to comprehend or realise. Maybe at some point in the future enough people will figure it out to make it change. I'm not holding out any hope though.

So essentially until we do figure it out we get the housing we deserve.

There are no words...

Stop paying the rent and you will get removed from your house.

Stop paying the mortgage and you will get removed from your house.

It's not that hard to see the similarities, and if you can't there isn't much hope for you.

Yes, clearly there is no hope for me 🤣🤣🤣

I live in a 3 bed semi, big front, 2 car spaces, garage, big back garden, extension.. my payments are easily managed. I live in the Midlands so the house was only 173k.

I'd love to have had the money to have purchased cash, but like you say, not many have that option.

But yeah, sack off mortgages and I could just carry on throwing money into a black hole and never be able to retire