The mortgage market, if you fancy buying a home, is very competitive. Shop around for the best loan, and especially at the moment with the huge housing price boom which is taking place right now I bet you will probably be accepted.
Also, you get 33% tax relief on mortgage interest repayments. Not enough to convince me to sign away all of our house, but you can factor it into your calculations if you need a loan. When you take out a loan you have to pay Stamp duty of 1.5% on the loan value, so a Mortgage should probably be looked at as a long-term commitment.
Incredibly,
this 33% tax relief on interest repayments extends to
ANY loans you may take out for any purpose. This
includes consumer loans to buy a car, new furniture, LCD
TV, holidays...you name it.
Thus the
incentive to save and invest is lessened still more, and
Denmark was recently named by the OECD as one of the
five most personally indebted countries in the world,
along with the likes of the UK and New Zealand.
Could there be a link?