One million homes face Interest-only remortgage threat

JimmyTheWig

Pete111 wrote: »

Think we are on 999,997 now?

Edit - 999,996

[STRIKE]999,995[/STRIKE]999,994 - we're another one.

IveSeenTheLight

JimmyTheWig wrote: »

[STRIKE]999,995[/STRIKE]999,994 - we're another one.

I'm not on interest only, but in reality my BTL's should be.
It makes better business sense for them to be so but I prefer to lower the risk by paying down the capital at present..

Blacklight

nearlynew wrote: »

The majority of people who take out IO mortgages do so reduce the monthly payment enough to enable them to afford to move into a house that they otherwise couldn't afford.

Until they inherit enough to pay the pennies they owe in 20 years and use the rest for retirement while others who decided to wait for 8 years for the crash that never came are still working 9-5 at 70.

Orpheo

Really2 wrote: »

Call: Can you pay back your debt at the end of the mortgage.

IO Mortgage holder: Yes.

What can they do, the loan is in place and they cant force them to submit details. All they can do is ask if they can repay or how they will look to repay.

But you missed the rest of the phone call.

Call Centre Graduate: Can you pay back your debt at the end of the mortgage.

IO Mortgage holder: Yes.

Call Centre Graduate: Lovely. Could you please send us statements to confirm that and the current level of your payment plan.

IO Mortgage holder: Ah. Oh. Erm. Erp...

There's lots of lubberly small print in mortgage agreements too and it is largely there to protect the lender. Their money after all.

It amuses me no end how somebody posts a personal anecdote of their IO mortgage and how easily it is going to be paid back or how much money they stand to make. They do this as if they singularly epitomise the whole of the IO mortgaged population. I know some IO mortgagees, some have payment plans that will probably work, some have payment plans that will probably fail, others have no idea how they are going to pay it back and some have gambled the farm and convinced themselves that there's no way they can lose.

RenovationMan

Orpheo wrote: »

It amuses me no end how somebody posts a personal anecdote of their IO mortgage and how easily it is going to be paid back or how much money they stand to make. They do this as if they singularly epitomise the whole of the IO mortgaged population.

Is it any different to those posters who announce that every IO mortgage holder is a 'debt monkey' (as I have been called on here) and scratching along on the breadline lurching from one financial disaster to the next?

Really2

Orpheo wrote: »

Call Centre Graduate: Lovely. Could you please send us statements to confirm that and the current level of your payment plan.

Can't do that they have already lent the money, all you have to do is say you have something in place.
Acc no for an ISA or something, they do not have authority to go in to your banking records as the deal is all ready done and nothing is being breeched (EG Interest repayments)

Sorry chap, all they can do is ask.


But I have put £20K in, in the last 18 months they are more than welcome to see it if required.

silvercar

Orpheo wrote: »

But you missed the rest of the phone call.

Call Centre Graduate: Can you pay back your debt at the end of the mortgage.

IO Mortgage holder: Yes.

Call Centre Graduate: Lovely. Could you please send us statements to confirm that and the current level of your payment plan.

IO Mortgage holder: .[/QUOTE]
Certainly, I will let you know at the end of the 25 year mortgage term as contracted. Did you read the contract you signed?

silvercar

999,993 the BTL can be sold as its not my home.

999,992 the offset savings account is growing nicely, thank you.

Really2

silvercar wrote: »

IO Mortgage holder:
Certainly, I will let you know at the end of the 25 year mortgage term as contracted. Did you read the contract you signed?

This got me in calculator mode, I wonder what you could get away with £100,000

If you said you based inflation on 3% you say you could save £2750. Increasing that by 3% each year will give you your £100,000.

But in todays terms you are only valuing the debt at £68,750. I wonder what they would say to that. You are clearly outlining your repayment method.

You could either say that or say you are going to save £2750 every year for 25 years and rely on 3% interest on average.

I presume as you are outlining you will repay it if it happens over 25 years they could say nothing but accept it.

You could take it further saying you will increase payment by 3% and rely on 3% interest over the period to down value the debt and initial repayments further.
But I cant be bothered to work that out.

leveller2911

nearlynew wrote: »

The majority of people who take out IO mortgages do so reduce the monthly payment enough to enable them to afford to move into a house that they otherwise couldn't afford.

This is so true, its all image with no substance.......;)

Given the fact that many have no repayment vehicle in place when the fixed rate comes to an end will the lenders let them carry on with an IO mortgage given that many many of them I know have little or no equity ???......Can't see it myself.

IMO they are in the mire big style.I personally know of 3 people with this scenario, no equity in the property at all, fixed rates coming to an end within the next 6 months.....If they go onto a repayment now ,even with rates low they won't cope.......

Anyone care to enlighten me how those who rely on HPI with little or no equity ,coming to the end of the fixed rate IO are gonna get out of the sh1te?