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Quarter of Brits on interest only mortgages

24567…27

Comments

  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    Dan: wrote: »
    How do you know these people do not have savings, ISAs, pensions schemes, future inheritance etc.
    Lol. How do you 'know' they do? Face it Dan, a lot of people have taken out such huge loans to 'get on the ladder' that they haven't a chance in hell of saving. The whole point was to enable people to buy houses they couldn't afford.

    Who would have thought that HPI would stop and spoil the game?
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    mewbie wrote: »
    Lol. How do you 'know' they do? Face it Dan, a lot of people have taken out such huge loans to 'get on the ladder' that they haven't a chance in hell of saving. The whole point was to enable people to buy houses they couldn't afford.

    Who would have thought that HPI would stop and spoil the game?

    You don't need HPI to live in your home.
  • halight
    halight Posts: 3,629 Forumite
    Part of the Furniture Combo Breaker
    I would jsut like to say that my own Mortgage is intrest only.
    But we pay into an ISA that invests in in shares and bonds. And as a bit of a top up we also have a savings account that we put a small amount in each month and at the end of the year we pay a small lump sum odd the Mortgage.
    So far for the last three years we have been able to pay £1000 a year off our Mortgage. Ok no not a great deal but aleast its somthing. also we do not intead to say on that sort of `Mortgage forever. Pluss we have the ISA that we pay into every month.

    I would also add that i do think that we are personally in NE with our Mortgage.
    :jYou can have everything you wont in lfe, If you only help enough other people to get what they wont.:j
  • geoffky
    geoffky Posts: 6,835 Forumite
    Dan: wrote: »
    You don't need HPI to live in your home.

    no but at the end of the 30 years you will need a big wedge to satisfy the bankers or he will be angry... ps i heard of someone the other day who had a 35 yrs mortgage...omg
    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.
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    Dan: wrote: »
    You don't need HPI to live in your home.
    Er Dan, you do know that an interest only mortgage is only paying the interest? The loan amount stays the same for ever? You are right - the mythical couple can live quite happily until they can't afford to pay the interest anymore.
  • nearlynew
    nearlynew Posts: 3,800 Forumite
    Dan: wrote: »
    You don't need HPI to live in your home.

    You do if you haven't got the money you need to pay to stay there when your IO mortgage term ends.
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    halight wrote: »
    So far for the last three years we have been able to pay £1000 a year off our Mortgage.
    How many years to pay off?
  • geoffky
    geoffky Posts: 6,835 Forumite
    halight wrote: »
    I would jsut like to say that my own Mortgage is intrest only.
    But we pay into an ISA that invests in in shares and bonds. And as a bit of a top up we also have a savings account that we put a small amount in each month and at the end of the year we pay a small lump sum odd the Mortgage.
    So far for the last three years we have been able to pay £1000 a year off our Mortgage. Ok no not a great deal but aleast its somthing. also we do not intead to say on that sort of `Mortgage forever. Pluss we have the ISA that we pay into every month.

    I would also add that i do think that we are personally in NE with our Mortgage.

    your one of the lucky ones ..i reckon there are loads who do not even know the full terms of a interest only mortgage..as they were not asked whether they had a repayment .plan..
    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.
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    geoffky wrote: »
    no but at the end of the 30 years you will need a big wedge to satisfy the bankers or he will be angry... ps i heard of someone the other day who had a 35 yrs mortgage...omg

    He won't be angry. If you do not have the balance then your out and the last 30 years would have been like renting (only better as you can as you please). Anyway, after 30 years the house is pretty much GUARNTTED to be worth more.

    If this someone has an IO only mortgage, then the term makes little difference..
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    geoffky wrote: »
    no but at the end of the 30 years you will need a big wedge to satisfy the bankers or he will be angry... ps i heard of someone the other day who had a 35 yrs mortgage...omg

    you've got that a little bit wrong Geoffrey - after those thirty years not even the most tin foil hat wearing of tin foil hat wearers can deny that HPI will have covered the initial amount borrowed by quite a bit actually the mortgage will be a very small amount of what the house is worth...
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