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Home owners to be moved off interest-only mortgages
Comments
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The vast majority of IO mortgages are taken out by people in order to lower the monthly payment enough for them to be able to move into a house that they otherwise couldn't afford.
100% fact and guaranteed.
A BTLer once advised me that this was what I should do to buy a house. I politely ignored her. She is now a struggling BTLer trying to offload her houses.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 -
Not at all.
My feeling, from people I have lived and worked alongside, is how financially naive/irresponsible it is possible for people to be. Especially when they have had years of being able to juggle endless borrowing, live beyond their means, and not had to address the matter of paying for an unaffordable lifestyle.
People come in all psychological shapes and sizes. Of course, the sensible amongst us haven't behaved like that and have made proper provision for the future.
The most likely scenario for people 'on here' is that they are more financially savvy than most and more likely to be facing their financial responsibilities and dealing with them wisely.
Are you saying that you agree that people with repayment mortgages are just as likely to be as financially inept/astute as IO mortgage holders (and vice-versa) and that the mortgage therefore has no relevence to an individual's financial awareness?
If that's the case, then I agree with you completely.
0 -
The vast majority of IO mortgages are taken out by people in order to lower the monthly payment enough for them to be able to move into a house that they otherwise couldn't afford.
100% fact and guaranteed"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
The vast majority of IO mortgages are taken out by people in order to lower the monthly payment enough for them to be able to move into a house that they otherwise couldn't afford.
100% fact and guaranteed
The vast majority of rental agreements are taken out by people in order to lower the monthly payment enough for them to be able to move into a house that they otherwise couldn't afford.
100% fact and guaranteed.
The difference of course is that rents are likely to increase roughly in line with inflation, while interest payments will tend to stay fixed. And there is likely to be capital growth over the term of the interest only mortgage.0 -
The vast majority of IO mortgages are taken out by people in order to lower the monthly payment enough for them to be able to move into a house that they otherwise couldn't afford.
100% fact and guaranteed
The vast majority of mortgages are taken out by people in order for them to be able to move into a house that they otherwise couldn't afford.
100% fact and guaranteed.
See what I did there? 0 -
RenovationMan wrote: »Your comparing apples and oranges again Thrugelmir. To turn this around, how is a fully paid off house going to provide much of an annuity or income for retirement?
Downsizing releases a tranche of equity. Hard cash. (View it as if somebody had invested into a personal pension plan all their lives). This money will be invested to produce an income or capital drawdown although this reduces income.0 -
RenovationMan wrote: »The vast majority of mortgages are taken out by people in order for them to be able to move into a house that they otherwise couldn't afford.
100% fact and guaranteed.
If using a dodgy broker quite possibly. Seems lenders are imposing tighter controls than they were though.0 -
Thrugelmir wrote: »If using a dodgy broker quite possibly. Seems lenders are imposing tighter controls than they were though.
You may want to re-read his post there.0 -
Thrugelmir wrote: »Downsizing releases a tranche of equity. Hard cash. (View it as if somebody had invested into a personal pension plan all their lives). This money will be invested to produce an income or capital drawdown although this reduces income.
What if it is a one bed flat?0 -
The vast majority of rental agreements are taken out by people in order to lower the monthly payment enough for them to be able to move into a house that they otherwise couldn't afford.
The difference of course is that rents are likely to increase roughly in line with inflation, while interest payments will tend to stay fixed. And there is likely to be capital growth over the term of the interest only mortgage.
That is probably true, but it still doesn't detract from the fact that.....
The vast majority of IO mortgages are taken out by people in order to lower the monthly payment enough for them to be able to move into a house that they otherwise couldn't afford.
100% fact and guaranteed"The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0
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