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Is your lender coming after your IO mortgage?
Comments
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What a load of B*llocks - are the only people on this forum old ladies in need of nannies?
I am IO because I earn more on my savings than I pay on my mortgage.
If I chose not to have a repayment vehicle and instead sell the property to repay the mortgage that is my business. The lender knows I have a big enough equity stake that they are not risking their capital. I am able to use the mortgage to leverage my position in property. I won't do this but I will take responsibility for managing my own finances and as long as I am not putting them at financial risk then I can't see it is any of the lender's or the Govt's business.
Was that your thread I saw on the benefits board a couple of months ago, asking about the extended mortgage taken out and how this would affect benefits? If your savings are the additional mortgage you took, then that isn't really savings. Apologies if it wasn't you; I haven't got time to look back at your posts.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
Renting, dead money?
As far as I'm concerned I'm living rent free. Already this year my rent has been doubly offset by falling house prices in my area.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
But does this make them financially savvy? Of course it does. In 10 years time they would be sitting on an asset worth more then they paid for.
And this is superior to a repayment mortgage how?
When I have sold my houses I have had the capital payed down returned to me in equity. I have had the added benefit of reducing the overall amount of interest paid by paying down the capital. With an IO mortgage you are always paying interest on the initial loan amount.
You are talking pants.
IO mortgages?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
And this is superior to a repayment mortgage how?
When I have sold my houses I have had the capital payed down returned to me in equity. I have had the added benefit of reducing the overall amount of interest paid by paying down the capital. With an IO mortgage you are always paying interest on the initial loan amount.
You are talking pants.
IO mortgages?
its okay but you have to remember on a btl property you have to pay tax on the capital payments.
nice pants0 -
And this is superior to a repayment mortgage how?
When I have sold my houses I have had the capital payed down returned to me in equity. I have had the added benefit of reducing the overall amount of interest paid by paying down the capital. With an IO mortgage you are always paying interest on the initial loan amount.
You are talking pants.
IO mortgages?
Only go IO if you know what your doing, clearly you don't so its best you stick with to the simple repayment products.0 -
new_home_owner wrote: »nice pants
Thanks. They're Dan's.
Reminds me of a childhood prank involving y fronts and a jar of marmite...Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Sorry, disagree on some points. Pity, but I guess we cant fight the bulls/bears battle all the time.
Fundamentally, this is NOT about risk to the banks, because there is none. It's about transferring business from lossmaking interest rates to deals at new, higher, rates.
That's not conspiracy theorist, that is the way businesses operate, and it's why call centre staff are being paid money and given targets to get people to switch. I guarantee no-one is getting their existing deals matched on the switchover, they'll be being shifted onto new, higher, rates, hidden possibly behind the idea that by changing the term to 40 years outgoings decrease. It's another misselling scandal in the making.
And on the moderate risk investments as a repayment vehicle, you're perfectly entitled to take whatever view you want on your risk profile. It's really not difficult over 25 years to beat match or beat interest rates on mortgages (and you'll be relying on these levels of returns to pay your pension in any case). If you don't fancy that, use an offset product or a repayment. But it really makes no financial sense at all to sink money into a place you can't access it in times of difficulty. That is a matter of conviction one way or another, but it's not for one group of terminally risk averse dogmatics to dictate to other people how they run their finances based on some peculiar notions of thrift.0 -
Only go IO if you know what your doing, clearly you don't so its best you stick with to the simple repayment products.
Can't find a hole in my argument huh? Carry on with what you're doing and we'll see you soon on the DFW forums...Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Fundamentally, this is NOT about risk to the banks, because there is none. It's about transferring business from lossmaking interest rates to deals at new, higher, rates.
That's not conspiracy theorist, that is the way businesses operate, and it's why call centre staff are being paid money and given targets to get people to switch. I guarantee no-one is getting their existing deals matched on the switchover, they'll be being shifted onto new, higher, rates, hidden possibly behind the idea that by changing the term to 40 years outgoings decrease. It's another misselling scandal in the making.
And on the moderate risk investments as a repayment vehicle, you're perfectly entitled to take whatever view you want on your risk profile. It's really not difficult over 25 years to beat match or beat interest rates on mortgages (and you'll be relying on these levels of returns to pay your pension in any case). If you don't fancy that, use an offset product or a repayment. But it really makes no financial sense at all to sink money into a place you can't access it in times of difficulty. That is a matter of conviction one way or another, but it's not for one group of terminally risk averse dogmatics to dictate to other people how they run their finances based on some peculiar notions of thrift.
It is up to the lenders on what terms they wish to lend though.0
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