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Home owners to be moved off interest-only mortgages

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Comments

  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    nearlynew wrote: »
    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

    i'm not disputing this but are you basing it on anything other than anecdotal evidence? i have an IO and it wasn't for this reason. in fact the overpayments i've made far outweigh anything that a repayment mortgage would have asked for.
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    nearlynew wrote: »
    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 vast majority of ALL 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.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    RenovationMan wrote: »
    Alternatively, the downsizer may have an IO mortgage on a very large house and downsize to a smaller home where his released equity just pays off the mortgage of the smaller place with no surplus but, and this is the important bit that many dont seem able to grasp - WITH NO MORTGAGE! :)

    Sometimes you have to detach yourself from a personal view, and be able to view a very much larger picture. ;)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ILW wrote: »
    What if it is a one bed flat?

    If your house is your pension. Then one has to cut ones cloth accordingly.
  • treliac
    treliac Posts: 4,524 Forumite
    ILW wrote: »
    What if it is a one bed flat?
    Thrugelmir wrote: »
    If your house is your pension. Then one has to cut ones cloth accordingly.


    Like downsize to a caravan or a beach hut. :D
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    treliac wrote: »
    Like downsize to a caravan or a beach hut. :D

    Beach hut? Do you know much they sell for........
  • treliac
    treliac Posts: 4,524 Forumite
    Thrugelmir wrote: »
    Beach hut? Do you know much they sell for........


    Somewhat less than a one-bed flat.... round here anyway. ;)

    I know it's crazy money though!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    treliac wrote: »
    Somewhat less than a one-bed flat.... round here anyway. ;)

    I know it's crazy money though!

    Only £79,000.

    Beach Hut at St Ives, Cornwall


    the%20beach%20hut.JPG










    http://www.beachhutworld.com/category.asp?cat=19&checksubs=no#prod190
  • treliac
    treliac Posts: 4,524 Forumite
    That's nice - looks way better than a one-bed flat. :)
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    "Borrowers without sufficient equity in their homes are being moved onto repayment deals once their initial deal has come to an end."

    Will that include BTLers too or are they protected as they are treated as investors? Either way, it's not so good for those landlords on interest only mortgages, who are letting without their lenders consent.:D
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


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