BoE: Gloomy Outlook

treliac

RenovationMan wrote: »

I'm not sure what you want me to say?

That bit wasn't directed at you in particular. I was just musing.

RenovationMan

Thrugelmir wrote: »

“People borrowing on an interest-only basis at the more expensive end of the market are generally doing it out of a conscious choice to plan their finances that way. They also usually have other sources of income and will have many more options, including down-sizing, if their income is reduced in any unexpected way. “At the lower end of the scale there is more of a danger that borrowers are taking interest-only in the shorter term to make loans more affordable. If there is to be some restriction of interest-only deals, it would make sense to put more conditions on those types of loans. It’s these borrowers who have fewer forbearance options if they do default – they’ll be harder hit than those with equity in a higher value property if they suffer a loss or reduction of income.” .

Thanks for this, I'll quote it the next time I receive a dig from fellow forum members about my IO mortgage .

Thrugelmir

RenovationMan wrote: »

Thanks for this, I'll quote it the next time I receive a dig from fellow forum members about my IO mortgage .

I wouldn't take it personally.

You need to put into perspective that in 2008, over 25% of all mortgages were granted on an interest only basis. Dropping to 14% in 2009.

NR was the main culprit up to 2007 with 35% of its entire mortgage book made on this basis. Often to borrowers on NR's 125% offering.

So the market needs tighter control to protect people from themselves.

RenovationMan

Thrugelmir wrote: »

I wouldn't take it personally.

You need to put into perspective that in 2008, over 25% of all mortgages were granted on an interest only basis. Dropping to 14% in 2009.

NR was the main culprit up to 2007 with 35% of its entire mortgage book made on this basis. Often to borrowers on NR's 125% offering.

So the market needs tighter control to protect people from themselves.

Oh I wont, well not much, but it does raise an important point about how people on internet forums and in real life should at least obtain a few facts before they climb onto their soapboxes...

So many people seem to have to make some sort of political or socio-economic point about a subject and do it with little or no regard to the question someone is asking or point they're trying to make.

For example, if someone asks for details on the best Interest Only mortgage deals, it's not really going to help them to receive pages full of preachy diatribes on the evils of IO mortgages.

chucky

Thrugelmir wrote: »

You need to put into perspective that in 2008, over 25% of all mortgages were granted on an interest only basis. Dropping to 14% in 2009.

NR was the main culprit up to 2007 with 35% of its entire mortgage book made on this basis. Often to borrowers on NR's 125% offering.

are you saying that NR's 125% borrowers were on interest rate mortgages?