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Someone I know pays only £26.10 a month on thier mortage!!...

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Comments

  • mumofjusttwo
    mumofjusttwo Posts: 2,610 Forumite
    Part of the Furniture Combo Breaker
    My mum's mortgage used to be £24.00 a month repayment!! She got the mortgage in 1969 so then £24 was quite a lot of money.
    January Grocery 11/374
  • pwllbwdr
    pwllbwdr Posts: 443 Forumite
    Part of the Furniture Xmas Saver!
    TroJon wrote: »
    Could also be a long term mortgage. £100,000 spread over say 40 years, as an interest only mortgage, can lead to some really low figures!

    The term makes no difference to the payment for an interest only mortgage.
  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    matt_h wrote: »
    Can someone explain how that works? Does it have to be an interest only one or something? I know the interest rates are low but that is crazy!

    some people i know don't even have a mortgage. how crazy is that!

    it depends on how much equity they own in their property and how much they are, effectively, borrowing from the bank.

    some sensible people have not seen the increase in the value as their home as an opportunity to get more debt (in the form of remortgaging). instead, believe it or not, preferring the security of actually owning their home to buying lots of shiny things or going on expensive holidays. crazy, huh?!
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
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