UKs biggest lender ends IO mortgages without evidence.

Jimmy_31

Graham_Devon wrote: »

This is a vanishingly small number of people.

Vanishingly small, I say.

Luckily for hamish the information i provided is anecdotal so does not count:rotfl:

Cleaver

Jimmy_31 wrote: »

Every single person i know who took out an interest only mortgage did so because they couldnt afford a repayment mortgage, every single one of them.

You know, I only know one person that I'm aware has an interest only mortgage. He earns over £80k though and takes the money he would have paid off the capital each month and invests it in the stock market and has a long term plan to have much, much more than the value of his mortgage at the end of the 11 year term. A bit risky for me, but it's his money.

Aside from him, I don't know of anyone else with an interest only mortgage. Maybe we move in different financial circles?

DervProf

Oh, I forgot about that customer I did some work for recently (hadn't seen him in a few years). During our little chat he informed me that he had switched to IO, as he could no longer afford the payments.

Loughton_Monkey

I can't see what the fuss is about.

In the 'old days' not only did you have to have the endowment policy in force for an IO mortgage, you had to assign the damned thing to them as well!

So all you do now is put £5340 into the ISA. Show it to Halifax. Withdraw the money. Carry on. Then wonder why you can't pay it off 20 years later.

Jimmy_31

Cleaver wrote: »

You know, I only know one person that I'm aware has an interest only mortgage. He earns over £80k though and takes the money he would have paid off the capital each month and invests it in the stock market and has a long term plan to have much, much more than the value of his mortgage at the end of the 11 year term. A bit risky for me, but it's his money.

Aside from him, I don't know of anyone else with an interest only mortgage. Maybe we move in different financial circles?

I dont really move in any financial circles, i mainly move around building sites.

julieq

Right, that's one all then. I can make it 2-1 with my old IO mortgage, think Jimmy equalised to 2-2. We have a fair few mortgages to count yet, though I suppose we could just conclude we don't know what the proportions are.

If you took a mortgage out in 1999 though, you'll have had 12 years of wage inflation compounding away. If you couldn;t afford repayments then the chances are high you can now. And what is the worst case if you can't repay? You'll have paid a hell of a lot less to live in a house than anyone who rented between 1999 and 2024.

Cleaver

Jimmy_31 wrote: »

I dont really move in any financial circles, i mainly move around building sites.

Fair enough. I don't really know anyone who works on a building site. Maybe we can conclude that more builders take out IO mortgages than the rest of the population. MSE Proven Fact #482.

System

My dad has an IO mortgage if anyone is still keeping score, also has 300k in some kind of offset thing. I don't have any idea why, he's about as minted as anyone I know so I just assume he knows what he's doing.

Jimmy_31

Cleaver wrote: »

Fair enough. I don't really know anyone who works on a building site. Maybe we can conclude that more builders take out IO mortgages than the rest of the population. MSE Proven Fact #482.

I have never worked with any builders so you cant base your fact on that, i have worked with plenty of tradesmen though so see what you can knock up from that anecdote.

Also every single person i work with on site who has bought a home didnt buy a new build, not one of them.

I could come up with an MSE Proven Fact of my own with that information.

mcc100

Is your lender coming after your IO mortgage?

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