We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Quarter of Brits on interest only mortgages
geoffky
Posts: 6,835 Forumite
oh dear.....looks like trouble to me....
New research has shown that nearly one-quarter of British homeowners are paying off their mortgage on an interest-only basis.
Conducted by moneysupermarket.com, the report found that 23 per cent of borrowers in Britain are not making capital repayments, despite the fact that switching could save them up to £40,000.
According to the website, transferring to a capital repayment plan will only cost £25 and borrowers will see an increase as small as £50 per month to completely pay off their mortgage.
Hannah Skenfield, mortgage channel manager at moneysupermarket.com, said it is "encouraging" that lenders are trying to stop homeowners taking out interest-only deals .
She added: "But this might be a case of after the horse has bolted. Our research finding that 23 per cent of mortgage holders are still only repaying interest on their mortgage debt is deeply concerning."
The website recently claimed that despite the Bank of England base rate being at an all-time low of 0.5 per cent, lenders are not reflecting this in their mortgage deals .
http://www.mortgages.co.uk/news/2009/Aug/quarter-of-brits-on-interest-only-mortgages.html
New research has shown that nearly one-quarter of British homeowners are paying off their mortgage on an interest-only basis.
Conducted by moneysupermarket.com, the report found that 23 per cent of borrowers in Britain are not making capital repayments, despite the fact that switching could save them up to £40,000.
According to the website, transferring to a capital repayment plan will only cost £25 and borrowers will see an increase as small as £50 per month to completely pay off their mortgage.
Hannah Skenfield, mortgage channel manager at moneysupermarket.com, said it is "encouraging" that lenders are trying to stop homeowners taking out interest-only deals .
She added: "But this might be a case of after the horse has bolted. Our research finding that 23 per cent of mortgage holders are still only repaying interest on their mortgage debt is deeply concerning."
The website recently claimed that despite the Bank of England base rate being at an all-time low of 0.5 per cent, lenders are not reflecting this in their mortgage deals .
http://www.mortgages.co.uk/news/2009/Aug/quarter-of-brits-on-interest-only-mortgages.html
It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.
0
Comments
-
As long as the monthly payment on an IO mortgage is "affordable" who cares?
:rolleyes:"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
as long as you can afford payments is the key...
People seeking advice after falling into mortgage arrears more than doubles in year
Read more: http://www.dailymail.co.uk/news/article-1076138/People-seeking-advice-falling-mortgage-arrears-doubles-year.html#ixzz0P1uyn16eIt is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Who cares? What are they going to do at the end?Happy chappy0
-
Interest only in a falling market is like renting with high risk.0
-
Stupid Buyer : "Can I buy that big shiny house"?
Mortgage Broker : "No, but you can move in if you rent it off the bank" *
Stupid Buyer : "Where do I sign"?
* Obviously the mortgage broker doesn't say this. But that is what he should say as he arranges the said IO mortgage."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
How do you know these people do not have savings, ISAs, pensions schemes, future inheritance etc.0
-
How do you know these people do not have savings, ISAs, pensions schemes, future inheritance etc.
Sorry, I don't normally do this, but..............
:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
Interest only in a falling market is like renting with high risk.
and also in a stagnating market after the market has fallen.
but at least you won't get kicked out and can do what you like with the place that you can't when you rent.
until HPI re-appears and you haven't paid back anything you owe it will be a tough time for many0 -
how do you know they understand what a interest only mortgage is....It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards