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.

I'd get all my equity back. Wouldn't get much back if I was renting

And sadly no reasonable arguments against what was posted either.

I disagree completely re your views on mortgages and home ownership. I do think paying rent is paying someone else's mortgage for them.

I own my car but can't do whatever I like with it. I have to obey the rules of the DVLA... I can't modify it however I feel like - does this mean I don't own it??

I also own my dog and cat but surely am not free to do whatever I want to them? Do I not own them either??

You can legally own a plot of land and you guessed it.... You can't do what you want with that either?

I suppose it depends how you define "equity".

Here's a question.

Lets say you buy a house for £150k and put in £40k of equity.

The housing market crashes and you lose your job. The bank repos the house and can only sell it for £90K.

How much money do you get back of your equity ?

Ok well watch what happens if you stop paying the mortgage. See who has the power to take your house then

I'm very grateful to the lovely building society manager who arranged a mortgage for me as a young person.
I don't mind if his building society made a profit out of my payments-
Both of us benefited- him with my interest payments or me with the rise in house prices.

Anybody wanting to buy - see a financial advisor- they really can help.

They know the best deals, they may get a commission , but far better than paying rent.

There was a financially savvy person on here regarding someone's lottery win recently , who suggested that a mortgage could be a better deal than buying outright for the lottery winners.

Don’t feel strongly enough about driving down the market not to buy a house yourself at the current mortgage-assisted prices though?

It’s not their house, no it is their home (like with renters). But it is owned by the bank on the premise the occupier pays until their term is up.

not sure what’s so hard to understand. Or why British people get so obsessed about owning a property

not sure what’s so hard to understand
Of course you're not. It's because you don't understand 🤷🏻‍♀️

If the £150k house can only be sold for £90k I'd have assumed that the Bank hadn't assessed the value every well.

Unfortunately taking a one person stand against a tide of stupidity can be financially ruinous.

I console myself by trying to point out the stupidity where possible and being more than happy for house prices to fall against my own VI because it would make a better society for the majority of us.

not sure what’s so hard to understand

Well, evidently, since you don't understand it.

@rooftopbird · Yesterday 23:14

YANBU I totally agree.

Homeowners homes are owned by the bank (unless your mortgage free obvs) Renters homes are owned by their landlord.

@dandeliondandy

It is not 'your own home' until the very last penny of the mortgage is paid off to the bank/building society and until the debt/loan is satisfied, it belongs to them!

Pretty much this yes. ^

Of course when you take out a mortgage to buy a house, the house will be in your name. YOU are on the deeds, YOU are the 'homeowner,' YOU can do what you like with the house (put a extension on, do renovations etc.)

But it's only officially 100% YOURS as long as you keep paying the exorbitant debt you have borrowed to acquire it. Stop paying the mortgage repayments, and see how much you OWN that house then. It may take quite a few months to be repossessed, but it WILL be repossessed.

Your home is no more secure than a person in social housing. They stop paying rent, they will be evicted and lose their home. A homeowner/person with a mortgage stops paying the mortgage repayments, and they will have the house taken off them, and will lose their home.

Only difference is that the person in social housing does not have to fork out a single penny in repairs and maintenance. Windows and doors, kitchen, bathroom, faulty loo, new roof, knackered boiler, leaky tap, broken door handle, broken roof tiles etc etc, ALL covered. Don't have to fork out 10s of 1000s of £££ over the years - along with exorbitant and rising mortgage payments - for unexpected repairs, and ongoing maintenance.

Yes of course, when said mortgage is paid - ya know, when you're virtually retired - you will own said property outright, but you still have to fork out multiple 1000s of £££ for repairs and maintenance. It never stops. A house has an ever-open mouth, and you will never stop spending on it. AND there is the fact that there's a possibility of having to sell it to fund your care.

I'm prepared to agree that being a homeowner/mortgage owner is marginally better than being in private let. But the ones who have the last laugh, and the most fortunate ones are those in social housing. That's why it's desired by so many, and so many millions are on the housing list.

Yep, Land Registry tells you that YOU are the owner when you buy a house. But as I said, it's only yours as long as you keep paying the debt you took out to buy it. So it's not really yours at all til it's paid for. No. It's really not.

And don't anyone waste my time with a ridiculous GOTCHA like 'I paid cash for my house - so I DO own it hahahahahaha,' because you are clearly not the kind of 'homeowner' I am referring to. I am referring to the vast VAST majority of people who have 25-30 year mortgages for multiple 100s of 1000s of £££. (In other words, the majority of people who have an 'owned' property.)

Because it’s a SECURED LOAN. The house is collateral. Of course they can call in the collateral if you don’t repay the loan. That doesn’t mean they own the house.

Jesus Christ - no wonder this country is screwed when people cannot grasp even basic legal and financial concepts like home ownership and secured debt, I doubt any government will be able to overcome this level of stupidity.

I think this thread perhaps shows some insight into why so many people end up in rental until retirement, they seem to view mortgaging as some dreadful conspiracy, being at the mercy of banks and business etc etc

Rather than securing their own future, they're busy shouting about how they're sticking to the the man/corporates or whatever.

I always thought it was about lack of affordability or not being able to get a mortgage but some people really do have this view that prevents them buying, thinking they're sitting prettier than mortgagees.

I suppose they must be well off enough not to worry about whats going to happen in retirement.

Dd rents because she doesn't want to pay the bank more in interest than the cost of her rent is.

But the likelihood is that she's just paying off someone else's mortgage so they own an asset eventually. Plus maybe some profit on top. Why give that to a landlord when she could have it for herself?

Weirdest thing happened. I came home from work and three people from the bank were sitting on my sofa having fish and chips.
Normally I'd call the police but thanks to this thread, I know who really owns my house, so now I have vacated my bedroom and am sleeping on the landing floor. Thankfully they have not asked me to leave yet.

That's a totally different situation. But hey!

I'd assume the bank had massive fucked up to be honest. Be a bit of a booboo for them wouldn't it. I'd obviously not have any equity.

But you said if I stopped paying. If I stopped paying right now I'd have about 55k in equity. Think of all the rent I'd be able to pay with that!!

It's worrying.

For their kids the most!

''Sticking it to the man''

Ohhhhh yes!

''I don't want a mortgage!... I don't want to be tied to a mortgage!''

Well many of us certainly don't want to be tied to a landlord, paying his or her mortgage {and then some}.

I lived through several recrssions. My flat i bought in SE london in the 80s went from 56k to 24k. Thankfully managed to p/e on a new build house who gave me over the odds to pay of my mortgage.

Just keep em sweet, you know who's in charge.