Slaves to Bricks and Mortar

A couple of weeks ago Little Nicky wrote with some concern of the constantly rising price of homes and said that the plan is to make us all slaves to our motgages.
Today a finance house in south-east England announced the launch of an ongoing, interest only mortgage. The idea is the fanancier buys your house and you pay interest on it for ever. Not just til you die, right, but for EVER!
There is a getout of course. You will be able to bequeathe your debt to your heirs. Alternatively the financier will simply grab your home and sell it again to some other mug.
After “renters” being stigmatised for the past few decades until they are second class citizens, this sounds an awful lot like renting but without any of the privileges.

If you want to know what happened lat week read a magazine,
if you want to know what happened yesterday read a newspaper, but if you want to know what will happen tomorrow read LITTLE NICKY MACHIAVELLI.

4 thoughts on “Slaves to Bricks and Mortar

  1. Actually Ian, renters are SO second-class citizens that this new scheme would actually be an improvement believe it or not.

    At present, with the exception of local authority and HA tenants, everyone else renting out in the private sector ( 80% ) has piss poor rights thanks to the grocer’s daughter bitch from hell changing the housing laws in the 1980s/90s to make bloody well sure if you’re a tenant you can be chucked out of wherever you live at 2 month’s notice, on the whim or general say-so of your landlord.

    So there’s no incentive to invest in improvements, to make a home out of your place, to put down roots, whatever. That produces a climate of insecurity which doesn’t exactly add to quality of life. So as long as the interest-only payments more or less match what the rent would be on the property, I say it’s a welcome new deal for renters who can’t afford big deposits or who dont want to risk getting stung in a possible house-price collapse in a year or two.


  2. I have a solution for you regarding the spiralling house prices in leafy and not so leafy England. Move North, here in Scotland we bought a property on the wrong side of the Loch, lovely, very cheap and quiet and in the country yet only 20 odd miles away from Glasgow and close to two major Airports, a good rail system and a nice winding country road to get to the main road. House prices remained artificially low for decades, this area was ignored by commuters who didnt realise its potential and began buying on the other side of the loch close to the A road and forcing house prices up and up and up.
    Here on the wrong side of the loch we are now being gentrified so prices are rising but for the price of a garage in London you could buy a nice 4 bed detached house with a large garden and wonderful views and yet still work in the city. The only downside is the rain. The plus is that we have 3 lochs, a marina, 4 reserviors, are 15 mins from the coast, surrounded by beautiful hills, rarely see a traffic jam and have very cheap insurance premiums.
    I am from the South originally – Hampshire and probably couldnt afford a shed in the town I was born in – not that I would want to live there. Last time i visited Farnborough it was an overcrowded, over priced, car choked, concrete jungle – thank goodness I had the sense to come North 15 yrs ago.


    1. I think I know where you are Shaz. I lived in Scotland but more Dumfries & Galloway than Kintyre way, for 4 years – from 1996 to 2000. I could easily have bought a nice cott’ for 30K but was put off by the weather.

      In hindsight I should have bought then, if only as an investment/hol home, as prices were dragging along the bottom cheap and had been for decades.

      Then weirdly, as soon as I left to move south, they f’king rocketed because of stressed-up English wanting to get the hell out of the giant vehicular rat run that is this horrid country nowadays. So anywhere in Scotland is around or over 100K – and rising fast as even more house price rise-rich English downsize and seek escape northwards.

      The housing sector’s a sad and sorry picture all ’round.


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