Is your lender coming after your IO mortgage?

Herbie_Hancock_I_wish

Building society it certainly was. They were the guys that I guess had some idea about what they were doing.

I won`t even say about some of the horror stories I know of over the last few years re buying a place. I just hope that those involved in the borrowing don`t lose their jobs or in some cases find out about the , ahem, self certification.

puddy

well ive only ever been on repayment because im not a risk taker and i hate the thought of paying more in interest than i should, mind you the amount of times ive remortgaged its probably ruined that thinking anyway,,,, but my point is that even with a repayment you still get the hard sell about income protection, mortgage protection etc etc, which i never take out, they always ask how its going to be paid if something happens or i lose my job, i always say, well i would sell the house

nearlynew

The majority of people that take out IO mortgages don't do so because they are "financially savvy"


They do it because it it lowers the monthly payment enough to enable thm to "buy" (and move into) a house they couldn't otherwise afford.

Brodiebobs

"Many people in their rush to obtain a large as possible mortgage to buy the most expensive house they could. They wouldn't have been listening to what was either said or written into their offers or contracts."

didnt apply to us though, borrowed less than 3x DH income with 25% deposit.... admittedly we didnt fully understand what we were agreeing to but were young and nieve but have since clued up, it was their staff sellling this, no where were we told we had to have saving or an endowment in place, i didnt now what they were until i read on here!

nearlynew

The majority of people that take out IO mortgages don't do so because they are "financially savvy"


They do it because it lowers the monthly payment enough to enable them to "buy" (and move into) a house they couldn't otherwise afford.

leveller2911

Haven't seen any of these financial whizz kids and experts in the press making any comments about the fact that Tax credits will be either stopped or drastically cut given that thousands of people were granted mortgages on the basis of tax credits being income/earnings........Am I missing something here guys n girls?..

Is it just not important that many inflated their incomes with TC 's ? or is it the elephant in the room?

macaque_2

Orpheo wrote: »

http://www.citywire.co.uk/money/should-interest-only-homebuyers-be-made-to-switch/a418953?ref=citywire-money-latest-news-list

How long before persuasion becomes enforcement?

On a 20 year mortgage, that takes 24.8% off the price that (interest only) FTBs can afford. We have seen an end to self certification, then bigger deposits and now this. One might almost believe that the support structure for inflated house prices is being dismantled by stealth.

michaels

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.

nearlynew

The majority of people that take out IO mortgages don't do so because they are "financially savvy"


They do it because it lowers the monthly payment enough to enable them to "buy" (and move into) a house they couldn't otherwise afford.

Thrugelmir

michaels wrote: »

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.

And you will be able to maintain this for the whole term of your mortgage?