One million homes face Interest-only remortgage threat

leveller2911

RenovationMan wrote: »

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?

Just remember whilst you may be doing very nicely indeed that because of the "Artificially" low interest rates for mortgages the flip side is Thousands upon thousands of pensioners who rely on the interest from savings are struggling ......remember the poor old 80 yr old woman who will have to think twice about putting her heating on next Winter.......;)

Pete111

leveller2911 wrote: »

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?

Yes, they will revert to the SVR

I very much doubt that the fixed terms they took out 2, 3 or 5 years ago are much better than the SVRs of most banks.

How do I know this? I know this because about 3 years ago I took out a 2 year fixed term mortgage as a high earner with a spotless credit record and a 20% deposit (which back in 2007 was plenty)

The best I could get was 5.2% (Base rate was 5.5% at the time)

From what you describe your friends are not as fiscally fortunate as me and may not have got such a low rate. As such, they may well be looking forward to a nice low SVR to move onto with no redemption fee - I know I was last year!

P

silvercar

leveller2911 wrote: »

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?

They move onto the lenders' SVR.

IveSeenTheLight

silvercar wrote: »

They move onto the lenders' SVR.

I have loads of equity, don;t rely on HPI and came to the end of my tie in period.
I'm not in the sh!te either.

I am on the SVR however as I cannot get a mortgage to compete with the levels I'm currently paying. :T

chucknorris

JimmyTheWig wrote: »

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

You can knock my 5 BTL mortgages off too, so that's now 999,989. I assume they are counting them in, afterall it's a home (for someone) and I own it

phil_b_2

leveller2911 wrote: »

remember the poor old 80 yr old woman who will have to think twice about putting her heating on next Winter.......;)

If that poor 80 yr old woman has enough savings that she could previously live happily on the interest alone, then she aint that poor. She probably has a hefty wedge in fact.

Exocet

chucky wrote: »

do you think they may, just may be out of negative equity in the next 14 to 23 years?

Yeah, they may be. Certainly something to celebrate. Instead of "darling we've paid off our mortgage", they can say "darling we're out of negative equity". The dream is alive and well.

leveller2911

phil_b wrote: »

If that poor 80 yr old woman has enough savings that she could previously live happily on the interest alone, then she aint that poor. She probably has a hefty wedge in fact.

Where did I say she could "live happily on the interest alone"????

I said she/they rely on the interest ........You will more than likely be old one day , hope you have a bit more compassion then..........
[EMAIL="Tw@t"]!!!!!![/EMAIL]

chucky

Exocet wrote: »

Yeah, they may be. Certainly something to celebrate. Instead of "darling we've paid off our mortgage", they can say "darling we're out of negative equity". The dream is alive and well.

i should have been clearer but i was hoping that someone would froth saying "they may be"...

sooooo instead of saying

do you think they may, just may be out of negative equity in the next 14 to 23 years?

i should be saying

100% guaranteed that they will be out of Negative Equity in 14 to 23 years and they will have made money out of HPI...and that article that amcluescent post on MSE was rubbish

debt is wealth

michaels

Might be worth checking that statement out if it is for your main residence rather than a BTL - you can now get tracker deals that beat even the best SVRs

IveSeenTheLight wrote: »

I have loads of equity, don;t rely on HPI and came to the end of my tie in period.
I'm not in the sh!te either.

I am on the SVR however as I cannot get a mortgage to compete with the levels I'm currently paying. :T