Leeds: 5 year fix at 4.59%

phil_b_2

Emy1501 wrote: »

Yes I wonder how many people have a 40% deposit?

40% what?! Where did that come from.

nearlynew wrote: »

The reason you are on an interest-ony mortgage is not because you are finacially savvy.

It's because you couldn't afford to buy your house on a repayment mortgage.

100% guaranteed

your guarantee's aint worth much. My/our monthly mortgage is about £300, we have nearly 50% equity and maybe have £2k disposable coming in a month doing nothing. I just like to keep financial insurances.

Emy1501

phil_b wrote: »

40% what?! Where did that come from.



your guarantee's aint worth much. My/our monthly mortgage is about £300, we have nearly 50% equity and maybe have £2k disposable coming in a month doing nothing. I just like to keep financial insurances.

Have a look at their website. Also with saving rates so low why would anyone have an interest only loan and not pay off their mortgage when rates can only go one way.

Thrugelmir

1984ReturnsForReal wrote: »

Slightly overlooked no doubt....

But is it important????

There's a fundamental difference between what you dream of obtaining and the hard facts of reality.

So yes it is important. Cruel to build up hopes only to take them away.

1984ReturnsForReal_2

Thrugelmir wrote: »

There's a fundamental difference between what you dream of obtaining and the hard facts of reality.

So yes it is important. Cruel to build up hopes only to take them away.

Twas' joke...:o

Thrugelmir

1984ReturnsForReal wrote: »

Twas' joke...:o

Missed it.......

Harry_Powell

Emy1501 wrote: »

Have a look at their website. Also with saving rates so low why would anyone have an interest only loan and not pay off their mortgage when rates can only go one way.

The low saving rates we have are temporary though, especially when compared with the term of a 25 year mortgage. Having an interest only mortgage allows you flexibility to make overpayments when mortgage rates are higher than saving rates, and to put your repayments into savings when the reverse is true. Pre-credit crunch, the mainstream banks had ISA rates upto 10%.

Interest only mortgages also allow flexibility when times are hard, such as a job loss. Much better to have low monthly outgoings during difficult times and to then overpay when times are better, surely?

Blacklight

Fundamentally it just proves that small houses or starter homes are well within reach of your average person.

I too, don't know what all the fuss is about.

Emy1501

Harry_Powell wrote: »

The low saving rates we have are temporary though, especially when compared with the term of a 25 year mortgage. Having an interest only mortgage allows you flexibility to make overpayments when mortgage rates are higher than saving rates, and to put your repayments into savings when the reverse is true. Pre-credit crunch, the mainstream banks had ISA rates upto 10%.

Interest only mortgages also allow flexibility when times are hard, such as a job loss. Much better to have low monthly outgoings during difficult times and to then overpay when times are better, surely?

If saving rates go up so will mortgage rates. Very few will be getting better rates on short term savings than the mortgage they pay so this argument of IO mortgages do not make sense. IN IFA with any sense will advise and buyer to have a repayment tool when buying.

The only reason some takes out IO without a repayment tool is because they cannot afford anything more.

puddy

Pobby wrote: »

One of my God children at 21 has paid £195,000 for a 2 bed starter home in the South East. Got himself a 40 year mortgage.

sounds a long term, but if they stick to that timescale each time they remortgage (ie to pay mortgage off when 41) it means they will have a mortgage free life for over 20 years before retirement. mine will be paid off when im 50 and that feels far too late (it was 25 years from when i was 25)

doh!! ignore me, i cant add 40 to 21, scrap the above

Harry_Powell

Emy1501 wrote: »

The only reason some takes out IO without a repayment tool is because they cannot afford anything more.

This statement doesn't make any sense. The "only reason some [people] take out IO....". What about some other people who take out IO without a repayment tool? If there is only one reason, then what about them??