My Life Analysed – The madness of my mortgage

I bought 25% of my lovely brand new, 2 bedroom flat in Surrey about 4 years ago now, and in that time I’ve saved £22000  ready to buy it outright. A recent valuation ‘valued’ the flat @ £190 000, so when I buy outright I will need to borrow about £120 000 to buy the 75% I don’t own, which, added to the roughly £20 000 I still owe on the bit I already own will mean an overall mortgage of £140 000….

Based on the best deal available (with The Post Officce according to Money Supermarket) if I take this mortgage out over a 15 year* period, I will pay £44 000 in interest, meaning I will pay back a total of about £184 000. Based on my take home pay which is just over £2400/ month, or about £29000/ year, this equates to about nearly six years of my life.

The only ‘rational’ response to this situation is one of anger. Anger at the fact that in this social system where land ownership is concentrated in the hands of the few and where a handful of financial institutions are given the right to generate money and thus interest out of thin air, I end up giving away 5 years of my life in order to make profit for the propertied elite and a further 1 or more years to pay the rentiers.

If I were given a quarter of an acre of land, some tools (which I could borrow not own), some people to work with occassionally, and the odd bit of expertise for the techy stuff, and I could build my own place for less than £10 000 – and do it in six months – so less than a year of total work-money-time.

Instead of this, however, restricted by Britain’s archaic planning regulations and the near certainty of not being gifted a quarter of an acre in a Tory heartland, I’m forced into a situation in which the only means** whereby I can meet my basic human needs results in my giving a further 5 years of my time to pay the profits of the various institutions surrounding the construction and financing of my flat – the original landowners, the construction company and the financiers.

Given all of this, I think people should not see ‘getting on the property ladder’ as something to be celebrated, not when our efforts to climb it are fast followed by the shaft-pole of capital.
To go a bit Baumanesque on this, housing is a basic human need, but the housing market in the UK is, I believe, a great example of one of those parts of the system that most of us have very little control over, and we are forced into accepting an extremely inefficient individualised solution to meeting this basic need – Renting in insecure accomodation for the first decade of our adult lives while we scrimp enough for a deposit, and then paying a hugely inflated sum when we finally purchase the property.

We never even imagine that we can change this system – And for many of us we think we’ve  ‘won’ when we ‘play hard ball and get 10k off the asking price, or we might feel smugly satisfied when we ‘save’ a few grand from shoppping around for a good mortage deal, failing to face up to the fact that a few grand is nothing compared to the £100K in interest we’re facing over the next two decades.

Having settled into our mortgage repayment schedule, our house then becomes part of our ontological security, and we go about filling it with our identity-markers to further make ourselves secure….We forget about the fact that this object which ties us to the system more so than any other object only does so if we allow those with more power than us to leech years of our lives from us.

What is really grim about this situation is that although the house, that locus of ultra-individualised privatism offers a very insecure security because the same system that ties us into the 25 year mortgage is also the same system that can generate both high unemployment in the interest of short term profits or high interest rates in the interest of long-term (relative) stability, not to mention the current issue with inflation.

Someone remind me again while I’m going along with this>>>????**Actually I am being somewhat melodramatic, there are alternatives… As I’ll outline later.

*Over the more standard 25 year term,  I would pay back £84 000 in interest – brining my total life-work up to about 7.5 years…..

 

 

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