UKs biggest lender ends IO mortgages without evidence.

JonnyBravo

DervProf wrote: »

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.

Absolutely. But I think he is making the point that it is going to require such an extreme set of circumstances for everything to go wrong and him lose everything that the risk is worth taking.
If you mean it is far from 100% that he buys a 2 bed cottage then of course that is more likely. He may buy a 3 bed. I'm certainly not going down to a 2 bed in retirement. Far too small. (Unless as you may point out, it is pushed upon me by circumstances)

DervProf

JonnyBravo wrote: »

This thread is just another discussion around viewpoints.

Isn't that what most threads are based on, viewpoints ? Yes, some end up in name calling and squabbles, but most are about people's views and opinions.

DervProf

JonnyBravo wrote: »

Absolutely. But I think he is making the point that it is going to require such an extreme set of circumstances for everything to go wrong and him lose everything that the risk is worth taking.

I never said, or even slightly implied that he would lose everything. I tried to point out (without spelling it out) that he was making quite big assumptions. This has been denied several times, so I will now spell it out.

Is it 1 in 3 marriages that end up in divorce ? I assume RenoMan is married, or living with a partner, as he did say that "When we finish off living here in 20 years". I think he later confirmed that he does have a wife.

Don't get me wrong, there is no need to contemplate a divorce, or any other life changing event. I don't even think that you have to plan for it (although a plan B might not be such a daft idea). However, if you state that "this will happen to us in 20 years time", and someone points out that it might not happen (as I did), then you have to be pretty naieve to not recognise that you are making significant assumptions in your original statement.

System

RenovationMan wrote: »

Dear me, not only am I going to be an incapacitated and too ill to work, ripped off by a couple of insurance companies and a pension company of my sickness and early retirement provisions, but now I am also going to split up from my beautiful wife. What a lousy 20 years that Dervprof has in store for me! What next, a meteorite hitting my house?

However, as I cant protect against any of the above so I'm not going to lose any sleep about it.

Not just me getting a massive undercurrent of schadenfreude then?

What about if you spontaneously combust? If I were you I'd jack it all in as the chips are well stacked against you it seems.

DervProf

RenovationMan wrote: »

However, as I cant protect against any of the above so I'm not going to lose any sleep about it.

I can help you out here too.......

Don't have an affair, and look after your wife. :kisses2:

DervProf

May I just make a few things clear.

I thought RenoMan had me on ignore, I never expected this discussion to take place.

I replied to one of his posts, stating that he was making assumptions, which I think was fair enough. He came back to me, disagreeing with my statement.

He didn't have to reply to my post, but chose to do so. Had he said something like "Fair enough DervProf, I am assuming that things going according to plan, but I don't think I'm taking any big risks". I'd have replied "Agreed, I reckon your plan is quite good." (as I think I did a few posts back).

I have been polite and reasonable thoughout this discussion. Accuse me of dragging it out if you like, but please consider how it could have been shortened, with one simple and honest reply from RenoMan.

shortchanged_2

RennovationMan what happens when BoE interest rates get back to more 'normal' levels though say 4-5%. Will you still be able to overpay your massive mortgage then. You are really benefitting from the current record low levels, which is why you are so desperate not to see a rate rise because it means less and less of your capital will be paid off as interest rates rise. Am I wrong?

DervProf

shortchanged wrote: »

RennovationMan what happens when BoE interest rates get back to more 'normal' levels though say 4-5%. Will you still be able to overpay your massive mortgage then. You are really benefitting from the current record low levels, which is why you are so desperate not to see a rate rise because it means less and less of your capital will be paid off as interest rates rise. Am I wrong?

I'm sure he'll be OK, he seems to have it all planned.

I think he's just looking for reassurance that he's doing the right thing, which I think he is, basically. I probably wouldn't leave myself quite so "vulnerable" to IR rises, but I am probably a little more risk averse. BTW. by "vulnerable", I don't mean that RM will be crippled by a 2% base rate rise.

I didn't set my sights on a stone cottage or to make money out of downsizing, I wanted to be rid of my mortgage asap. This I have achieved. If I wanted to give you the details why my life is good, I would, but I prefer to just enjoy what I have and not boast about my bank balance or the type of car I drive. If I were advertising how much debt I were in on an internet forum, then it would probably mean that I was worried about it to some degree, and was looking for advice.

Pimperne1

Anyway, far from dismissing IO loans as a bad idea Lloyds are actually increasing the ceiling from £500k to £1m.

http://www.mortgagestrategy.co.uk/specialist-mortgages/lloyds-increases-interest-only-loan-cap-to-%C2%A31m/1029692.article

DervProf

Pimperne1 wrote: »

Anyway, far from dismissing IO loans as a bad idea Lloyds are actually increasing the ceiling from £500k to £1m.

http://www.mortgagestrategy.co.uk/specialist-mortgages/lloyds-increases-interest-only-loan-cap-to-%C2%A31m/1029692.article

Good news for those who want them and qualify for them. Hopefully good news for the taxpayer too.

To imply that Lloyds are encouraging IO loans, because they are increasing the limit, might be misleading. I think this change of policy should be considered with other changes they are making.