When you think of owning a house, you think of your self in two or three decades relaxing in a property that you own outright. This reduced mortgage refinancing financial strain you would have to live with in your later years. Unfortunately, this concept is rapidly flying out of the window. Along with a lot of other traditional banking and lending rules, the maximum length of mortgages is on the rise in a major way. It used to be standard practice that mortgages were for twenty five years and it was exceptional if a mortgage was granted for a longer period. This has been turned out by the huge rise in property prices in the last few years.
People are becoming less and less able to repay their mortgages in the standard twenty five year span and are opting for thirty year mortgages. There are even reports of people mortgage refinancing out mortgages for terms over fifty years to be able to afford the home they want now. This leaves people with the prospect of trying to pay off their mortgages off when they have retired. This is dependant on the age the person was when they took out the mortgage. This does not help to reduce the amount of financial pressure that people face after they have retired at all.
People want to own a house so that when they are older they dont need to be financially responsible for paying rent after their income is reduced by retirement. This benefit is completely nullified if they are repaying a mortgage at that stage of their lives. The worst part is that financial pressure on you is never reduced in any way until the day that the mortgage is completely paid off. It also means that you have to begin hunting for property and planning for your life at the age of eighteen if you have any chance of repaying of repaying the mortgage by the age of seventy.
This means that if you're in your twenties or thirties you are going to be lucky if you can truly claim your home as your own before you die. This is an incredibly scary thought and one that an increasing number of people have to consider when applying for a mortgage to buy their home with. This also means that you have to spend your entire life repaying this debt and not missing a single payment or you will have to forfeit the home you have worked so hard to buy in the first place. Having a mortgage hanging over your head for such a period of time can lead to a lot of problems, not least of which are the financial implications.
National Guarantee is reputable financial institution that is authorised and regulated by the Financial Services Authority. They specialise in Buy to Let Mortgages, Remortgages, CCJ Remortgages as well as Adverse Credit and Self Cert Mortgages and Homeowner Loans. For further information visit: http://www.nationalguarantee.co.uk/
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