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Quarter of Brits on interest only mortgages

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Comments

  • nearlynew
    nearlynew Posts: 3,800 Forumite
    Dan: wrote: »
    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..


    The house may well be worth more.

    But if you haven't saved, how do you "get the money" to pay what you owe to the bank?
    "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
    chucky wrote: »
    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...
    So you can sell the house to pay back the loan. Brilliant. Oh but where do you live then? I know. Rent somewhere.
  • wageslave
    wageslave Posts: 2,638 Forumite
    Dan: wrote: »
    Intertest only is not a new thing
    It used to be a prerequisite of interest only mortgages that you had to have a vehicle in place to repay the capital sum when the mortgage came to term.
    I think that condition was quietly dropped after the mis-selling of endowments fiasco.
    Retail is the only therapy that works
  • nearlynew
    nearlynew Posts: 3,800 Forumite
    mewbie wrote: »
    So you can sell the house to pay back the loan. Brilliant. Oh but where do you live then? I know. Rent somewhere.


    ...............Or buy a cheap house to live in.




    *looks around for a cheap house*





    "Oh !!!!!!"
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    mewbie wrote: »
    So you can sell the house to pay back the loan. Brilliant. Oh but where do you live then? I know. Rent somewhere.

    or remortgage or even move before the 30 years are up.

    don't forget you will be wages will be higher in year 5 and even higher in year 10 of your mortgage than year one so you will have paid back more
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    nearlynew wrote: »
    The house may well be worth more.

    But if you haven't saved, how do you "get the money" to pay what you owe to the bank?

    Remortgage and trade down
  • mrcow
    mrcow Posts: 15,170 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    So what?

    Just because someone isn't on a repayment mortgage, it doesn't mean that they don't have a repayment mechanism in place.

    You'd have to be pretty naive to think otherwise? :confused:
    "One day I realised that when you are lying in your grave, it's no good saying, "I was too shy, too frightened."
    Because by then you've blown your chances. That's it."
  • wageslave
    wageslave Posts: 2,638 Forumite
    chucky wrote: »
    or remortgage or even move before the 30 years are up.

    don't forget you will be wages will be higher in year 5 and even higher in year 10 of your mortgage than year one so you will have paid back more
    Anyone who has no other way of repaying the capital sum borrowed other than a vague hope that they will be earning more or that their house will be worth enough to pay the mortgage and buy another house outright is a lunatic.
    Retail is the only therapy that works
  • nearlynew
    nearlynew Posts: 3,800 Forumite
    Dan: wrote: »
    Remortgage and trade down


    What a lovely thought.

    Spend 25 years paying rent to the bank. Then when you retire take out another loan to pay for your house.

    This confirms my theory that all HPI cheerleaders are, in relity, debt jukies.

    thank you
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    wageslave wrote: »
    Anyone who has no other way of repaying the capital sum borrowed other than a vague hope that they will be earning more or that their house will be worth enough to pay the mortgage and buy another house outright is a lunatic.

    agreed but that's not what i said
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