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 mean, whether it is right for your dd or not is very much influenced by all sorts of other things.
I don't think you've said how old she is, for a start. I'd encourage my dc to get out and see a bit of the world before settling, so if your dd is 23 or 24, then my opinions on what might be "sensible" are quite different from if she is in her 40s.
Plus of course relationship status (2 salaries over one), plus what her job is and salary and the security of her job, and how long she wants to stay in London and how flexible her job is and so on.

Of course you own the home. Look at the entry on the Land Registry. Indeed, it is the very fact a person owns the home which allows them to get the mortgage.

If I pay for my shopping on a credit card do I not own my apples?

What an utterly bizarre view point borne out of your sensitivities!

Yes because you don't own the rental property.. do you see it yet?

Its sort've in the small print when you take out a mortgage duck. You have to keep the payments up. They don't just give you the house for free. It's still mine. My house. Which I own.

this. They are not your friends.

Not until it’s paid off

Always felt highly annoyed by people who looked down on renters. I rented in London for over 30 years because it suited me. I retired from my job, took my pension lump sum, bought a derelict house in a rural area for cash and am fixing it up to live in. Never had a mortgage and very happy about my choices.

Owning your own house means that you don’t pay someone else’s mortgage and you can do what you want to do in your house.

If we were to rent our home, it would cost £1450 pm. Instead we bought our home and pay £900 pm mortgage. After 25 years, it’s completely ours.

You mean...more snide than commenting your friends children can only get a 150k mortgage at 90pc ltv?

Sounds like sour 🍇 to me

If they force the sale of your house then you will get any money back over what the bank is owed. How much rent do you get back if you stop paying and get evicted?

It doesnt change that fact that the house is owned by the you. The bank just have a mechanism where they can force a sale if you decide not to pay the mortgage (and you would have to really fuck them around to get to that point)

Think I best call the land registry and tell them they're doing it wrong.

Unless you are in negative equity

Indeed a fact unless the LL wants you out before end of AST and pays you early leaving money.

If they force the sale of your house then you will get any money back over what the bank is owed. How much rent do you get back if you stop paying and get evicted?

This. If I defaulted for months on my mortgage this year and it was repossessed by my mortgage company, I'd still get back approx 430k due to the house going up massively in value.

If I was renting it, I'd get 0

Having a mortgage to buy a home is an investment in property.

Paying rent is not - the rent is likely paying someone else's mortgage which is a property the renter will never own.

People with mortgages might not own their homes outright at the current time, but in 25 years time your dd will still be renting white those with mortgages will not only be living rent free but they will also own their home and be able to sell it and downsize/upsize, leave it as inheritance for their children, borrow against it etc.

Legally you're wrong. A person with a mortgage owns the property, the bank just had a loan secured against it. The bank doesn't own the property.

I think your so called friends are being snobs. The terminology is totally fine. Own with mortgage, own outright. They are different.
But your daughter's choice to rent in central London is sensible. Why are the commenting on her holidays? Ignore them fully on this subject, if not many others.

YABVU. The only time I have ever encountered the mentality of 'well technically the bank owns ur home hurr durr' is when I was talking to a lad with no stake in society, job or ambition.

That being said, buying a house in an area where 150k affords a 3 bed house suggests that the area your friends DC are investing it is likely not a great investment and is nothing like the achievement they think it is.

I haven't read the whole thread because your post is pointless. Above everything buying a house provides stability, renting means you can be kicked out at anytime and subject to annual rental increases. Buy a home or don't, who cares! FFS

Does a mortgaged owner have a landlord to fix a burst pipe? No. Can the mortgaged owner approach the bank to fix the burst pipe? Also, no. The person responsible for fixing the burst pipe is the owner.

YABU, owning a home with a mortgage is still owning - mortgage payments become equity and the rights & responsibilities of an owner are distinct from a renter.

But more importantly, your friends are utterly insufferable twats for making negative comments about your daughter choosing to rent and you are completely unreasonable for not shutting that down immediately. Stop engaging in that ugly proxy war with your “friends.”

There’s two separate and largely unrelated issues in your post:

a) whether owning a home with a mortgage makes you a homeowner: it does because your name is on the title deeds. You own the property with debt but you still are the legal owner of the home. Over time as you pay down debt the equity accrues to you not the lender unless you default on the mortgage. In most circumstances in most parts of the UK and depending on how much you have borrowed you will usually be better off paying a mortgage than paying rent

b) Why the fuck do your friends think it’s acceptable to make snide comments to you about your DD’s financial arrangements and what she chooses to spend her salary on?

Regardless of your DD’s living arrangements you need better friends.

I guess you can extend that thought process further. If you have borrowed money to buy a car you don't own the car until you have paid off the loan. If you buy a sofa on your credit card the sofa isn't yours until you have paid off your credit card bill etc.

Contractually the home is yours but you are still obliged to pay back what you borrowed to buy it and if not you will lose your asset. It doesn't mean it's not yours though for the duration of paying it off and once it's been paid off.

Does a mortgaged owner have a landlord to fix a burst pipe? No. Can the mortgaged owner approach the bank to fix the burst pipe? Also, no. The person responsible for fixing the burst pipe is the owner

Yes, and that cost of the burst pipe will be reflected in the rent when it goes up next year because thats what many landlords do!