UKs biggest lender ends IO mortgages without evidence.

DervProf

RenovationMan wrote: »

What am I assuming?

Lots of things. 20 years is a long time. A lot can happen in that time. You can't say that your mortgage being paid off in 20 years time is a "done deal". My mortgage is as good as paid off, it really is as close to a "done deal" as you can get, but until I pay it off, the deal is not done. You appear to be a lot further away from paying off your mortgage than I, so to say your mortgage will be paid off in 20 years is making a lot more assumptions.

DervProf

RenovationMan wrote: »

LOL, is that the best you can do?

I didn't know it was a competition, or that I was being judged. It was a fair and honest comment. If you don't agree with it, fine, but I promise you it is true.

Graham_Devon

RenovationMan wrote: »

Thats a shame, sorry to hear that Graham. However, in my case I have income protection insurance that will pay a monthly income if I am unable to work due to illness. The policy pays out until I get better and return to work or until I retire. My employer also has insurance policies in place for long term sickness, incapacity and death in service. I am also a member of a final salary pension that has provision for early retirement due to ill health.

Yes. So did dad. They wriggled out due to a GP appt 20 years previously which they didn't know about and dad had completely forgotten about.

Equity helped them. Bought and sold at impeccible times, though that wasn't planned. However, you can't replace a home.

DervProf

Graham_Devon wrote: »

Yes. So did dad. They wriggled out due to a GP appt 20 years previously which they didn't know about and dad had completely forgotten about.

Sounds familiar.

Graham_Devon

DervProf wrote: »

Sounds familiar.

LOL, yer, just read your comments.

These things happen. Insurance is a difficult one. Works for many. Fails for others.

DervProf

Graham_Devon wrote: »

LOL, yer, just read your comments.

These things happen. Insurance is a difficult one. Works for many. Fails for others.

Certainly does. Income protection insurance does carry a bit of a bad reputation when it comes to "clauses". A friend found this out to his cost. Fell off some steps and couldn't carry out his work for about six weeks (he had to have knree sugery due to damaged ligaments). Because he was capable of answering the phone, they said he could still run his business (which involved carrying out service calls in customer's homes), so they didn't pay his claim.

He assumed he was covered, but found out otherwise. I am quite sceptical about income protection insurance, as I know how insurance companies can behave in these cases.

Thrugelmir

RenovationMan wrote: »

We intend living here until we get close to retirement, this is 20 years away for me and a little longer for my wife. We both have secure and stable employment

The world of business has changed rapidly the past 20 years. I would expect the pace of change in the next 20 to be even more rapid.

JonnyBravo

This thread is just another discussion around viewpoints.

Both outcomes are possible but which is more likely?

I think both sides (?) would acknowledge RM's viewpoint is more likely but there are a few sets of circumstances which could see DervProf's concerns or Graham's experience with his parents come to pass. However, is the risk worthwhile?
I'm with RM that his risk/benefit ratio is absolutely fine. Clearly all that is happening here is other people are highlighting they exist on a different part of that spectrum. You are both right, both can be happy in the knowledge they made the right decision for them whatever the outcome as both sides can say "ah yes but if X had happened".
I'd suggest we have a far higher proportion of the "cautious viewpoint" in here than is reflected by the general population though.

DervProf

I too have made plans for my retirement. I am pretty sure those plans will come to fruition, but it I recognise that it is not guaranteed. Unlike yourself, I don't share the details of my plans, as I think they will be of little interest to members of this forum. You seem to be seeking some sort of feedback, or support for your plans, so I will oblige.

I think they are fairly sensible, and you probably will end up in a 2 bedroom cottage. My only comment was, and still is, is that you seem to be totally convinced that it will all work out as you expect. I don't think anyone, apart from yourself, would agree that it is 100% guaranteed that you'll end up in a 2 bedroom cottage.

I hope you are happy, and agree that my response is sensible, and correct.

DervProf

JonnyBravo wrote: »

This thread is just another discussion around viewpoints.

Both outcomes are possible but which is more likely?

As my previous replies state, my comments are that RenoMan is making quite a few assumptions. I have just stated that there is a very reasonable chance that his plans will work out. The only thing I don't agree with is his 100% conviction that everything will turn out as he expects in 20 years time. It may, or may not - that is 100% guaranteed.