Interest only Morgage ???

opinions4u

confused31 wrote: »

So what, precisely, is going to drive future growth in house prices?

all i can say is history, house prices have always rose over a ten year period and the evidence from the past is there to see, we can all says its never been this bad, but eventually it will recover.

In the 1920s Huddersfield won the Football League title a few times. They've started their League One campaign rather well this season I suppose. Surely there was a point in history that said "Huddersfield will always be the best football team".

The FTSE always goes up over an extended period of time doesn't it. History has always told us this. Except it hasn't over the last 10 years.

http://www.moneyweek.com/news-and-charts/market-data/ftse.aspx

Labour never win a third term in office. Except they did at the last election.

The big banks are secure blue chip stocks. Except they're not at the moment.

History is a tiny part of a much more complex set of economic indicators within the UK and globally.

The 1980s saw a freeing up of mortgage finance that drove additional lending and remove the need to sit on a waiting list for months before you could actually get a mortgage.

The last decade saw a freeing up of wholesale funding that left the likes of Northern Rock raising 80% of their lending from new sources that didn't previously exist, and HBOS (a much bigger fish) around the 65% mark.

That wholesale funding vanished. While it may return in larger quantitiies over the next decade, would you rely on it if you were a bank?

I don't see anything that will return lending to levels seen earlier this decade. So what's going to push house prices upwards?

I don't have a crystal ball. My own view is that the housing market will recover and prices will rise at or very slightly above the rate of the RPI or CPI. But if you want that sort of return on an investment you would be best sticking your money in National Savings Index Linked Certificates. Not bricks and mortor which attracts council tax, capital gains tax and ongonig maintenance costs.

And if house prices actually fall further, your interest only idea may be the worst judgement call you ever make.

Pobby

Just had a thought. I wonder how many who bought years ago on a endowment mortgage, still have the endowment in place? I spoke to a friend who bought in the 80`s and sold his endowment off to cover debts. From what I gather he has possibly £120k of equity left and he plans to downsize so he will be fine if it works out.

confused31_2

opinions4u wrote: »

And if house prices actually fall further, your interest only idea may be the worst judgement call you ever make.

I want houses to fall im looking to buy, the plan for my current house is to keep it between 10 and 15 years and then sell.

Weekend_warrior

Hi All,
I'm looking for some advise and I am sorry if I have posted in the wrong area of the site.
I am having a real hard time with my Mortgage provider Bank of Scotland.
The story is back in 2004 I was forced to give up work to care for my Wife, I was getting my mortgage intrest payed by the D.S.S. but I had a shortfall between the D.S.S. payments and the amount of my mortgage so I agreed to pay £100 per month which I found a real struggle anyway my wife died in May 2009 and as I was on my own the D.S.S. payments have changed so I got a fresh letter from Bank of Scotland saying I had a shortfall of £20 per month.
I phoned the bank to query this amount as up to this point I was paying £100, the bank said in May there was no need to set up a standing order for £20 per month as the would take the £20 of the £2734.87 I had accumilated to my account as a result of my £100 per month payments.
I asked why they had let me run this amount up when I was struggling to pay the £100 per month and they should have informed me that £100 per month was to much, I got the usual waffle, I then asked for the overpayment to be returned and they said no as the D.S.S. could ask for their money back at any time, I stressed that the £100 per month was my personal money and not D.S.S. money but they wouldn't move their position.
I contacted the D.S.S. who said that even if major fraud was proven against me the D.S.S. would reclaim the mortgage intrest payments from me and not the bank.(they also said the banks statement was rubbish)
I wrote a letter to the bank back in May asking for them to reconsider their position and told them of my finding with the D.S.S., I also asked them if they are going to continue to hold my overpayment as a sort of deposit/retainer does this mean that everyone who is having their mortgage intrest payed by the D.S.S. must lodge the same deposit/retainer?
I to date have been given a real runaround from not receiving the original letter even though I have the proof of delivery, I phoned in June for a update as I had heard nothing and was told no letter had been received I was given a number to fax a copy to, I left it a week and phone and was again told the fax wasn't received and no record of my last call was logged on my account, I was again asked to fax my original letter to a secure collections number which I did.
At the beginning of August I received a letter saying they have appointed a senior member of their team to look into the issues I have raised and would be back in contact no later than 4 weeks.
On 8th Sept I received another letter from the bank saying they need another 4 weeks.
Where do I go from here?
Am I right or wrong to demand the overpayment back?
Why are they dragging their heels?
Any thoughts would be appreciated.

W.W.