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got an interest only morgage? Whats your plan?
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"What happens if when the lender says its time to pay up"
Can a lender do that? Isn't that the equivalent of them just saying "Give us your house"?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
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We worked it out that the amount of money we have paid on an interest only mortgage works out at around the same price as if we were renting the property and, as long as we get back our original investment (which we will do) we arn't out of pocket. It is almost like renting from yourself with the added advantage that the property is yours to do what you like with and you keep any profit when you come to sell it.
When we retire we are going to downsize anyway so its worked out well for us.
If you had a repayment mortgage you would own the property in due course................................I have put my clock back....... Kcolc ym0 -
bulletproof_1979 wrote: »Well surely when the term is up its pay up or hand over the keys isn't it?
Well, that's a bit different to "What happens if when the lender says its time to pay up", that's more like "When it's time to pay up".This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
We have cash ISAs which used to pay more than the interest on the mortgage but don't any more. The last few months we've therefore stopped paying into them and send Abbey a cheque each month for the difference between the interest and the amount the repayment would be if we were on a repayment mortgage.0
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Good plan Amarillo :j :j :j...............................I have put my clock back....... Kcolc ym0
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We have taken another view which may or may not interest some.
We worked it out that the amount of money we have paid on an interest only mortgage works out at around the same price as if we were renting the property and, as long as we get back our original investment (which we will do) we arn't out of pocket. It is almost like renting from yourself with the added advantage that the property is yours to do what you like with and you keep any profit when you come to sell it.
When we retire we are going to downsize anyway so its worked out well for us.
You seem strangely certain
I'm really not sure why, MSE is littered with the broken hearts of people who made this assumption , need to sell for a host of reasons - redundancy, moving to find work elsewhere, disabvility divorce etc. and are selling - or getting repod now, and taking huge unsecured debts onwards with them?
Whats your secret?:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
We have taken another view which may or may not interest some.
We worked it out that the amount of money we have paid on an interest only mortgage works out at around the same price as if we were renting the property and, as long as we get back our original investment (which we will do) we arn't out of pocket. It is almost like renting from yourself with the added advantage that the property is yours to do what you like with and you keep any profit when you come to sell it.
When we retire we are going to downsize anyway so its worked out well for us.
similar to me.
in 24 years time I won't be in this house anyway, so couldnt really care less. So I'll either sell up and give the mortgage company what they are owed, using whatever equity we have in the house to buy a nice little place abroad
(Im pretty sure house prices will be higher in 24 years than they are now).
or start from scratch again.
It would be nice to be on a repayment mortgage, but Im of the mindset that I'd rather live in a nice, big house interest only for the time being than in a small house on a repayment mortgage. Different people want different things0 -
bulletproof_1979 wrote: »Well surely when the term is up its pay up or hand over the keys isn't it?
Sorry, I should have been clearer!:p
If he took out a 25 year mortgage, in 25 years time the lender will write to the OP and say its now time to pay £xxxxx!
Also chances are you may owe more than when you started!"Banking establishments are more dangerous than standing armies." Thomas Jefferson
"How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen
Debt Apr 2010 £00 -
heh, always wondered why interest only mortgages had a term.
What amazed me, is that when I took out my interest only mortgage, no one asked for proof that I was saving anything. Luckily I am
This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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