UKs biggest lender ends IO mortgages without evidence.

brit1234

I have a few friends who bought homes with interest only loans, the rest shared ownership and shared equity. Infact I am unaware of many at all who could afford to buy normally.

However as well as the first time buyers on IO loans there were mass swarms of buy to let landlords gearing any equity to buy further properties on IO loans. I wonder how many of them have repayment vehicles?

At least the Wilsons do with their 1000 homes, they are not in trouble.



Their repayment fund is their horses and is as safe as houses.:D

Pimperne1

brit1234 wrote: »

I have a few friends who bought homes with interest only loans, the rest shared ownership and shared equity. Infact I am unaware of many at all who could afford to buy normally.

However as well as the first time buyers on IO loans there were mass swarms of buy to let landlords gearing any equity to buy further properties on IO loans. I wonder how many of them have repayment vehicles?

At least the Wilsons do with their 1000 homes, they are not in trouble.



Their repayment fund is their horses and is as safe as houses.:D

You need to update the Halifax figures in your signature.

brit1234

Pimperne1 wrote: »

You need to update the Halifax figures in your signature.

Sorry just back from holiday, I take it was a small rise and probably another next month with the spring bounce before crashing.

Will look up in the morning.

undetterred

Jimmy_31 wrote: »

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.

Fact 567 your 're a boring t2at.

Orpheo

HAMISH_MCTAVISH wrote: »

I'm sure you missed an "in my opinion" there.

I suspect the numbers that couldn't afford a repayment mortgage were vanishingly small.

No.

In the past, when arranging mortgages, I have been "advised", more than once, by mortgage "advisers", to take out an interest-only mortgage in order to borrow more money. Needless to say I refused and only bought what I could afford. I have also been "advised" to do the same, recently, by a BTL numpty.

Orpheo

The only reason IO mortgages, without repayment vehicles, were allowed/encouraged was because the "experts" and banks believed that house prices would increase for evar and evar and evar. It appears that they have changed their view.

geneer

Pimperne1 wrote: »

You need to update the Halifax figures in your signature.

Hiya Pimp.
When are you going to tell the troops your the forums latest STR.

They love STRs round here.

HAMISH_MCTAVISH

Pimperne1 wrote: »

I read on another website a description of Interest Only mortgages - "Agree the price today, pay for it in 25 years time". .

Also true.

Even an I/O mortgage with no repayment vehicle is a far better proposition than renting for life.

I still think you shouldn't buy until you can afford a repayment mortgage.

But as an example.....

My parents bought a house in 1967 for £3700.

Had they not ever paid it off, but instead stayed on I/O, the interest payment last year, for the whole year, would have been around £150.

To rent a similar property last year would have cost around £12,000.

If lifetime I/O mortgages were available, renting from the bank would be far cheaper than renting from a landlord.

DervProf

HAMISH_MCTAVISH wrote: »

Also true.

Even an I/O mortgage with no repayment vehicle is a far better proposition than renting for life.

I still think you shouldn't buy until you can afford a repayment mortgage.

But as an example.....

My parents bought a house in 1967 for £3700.

Had they not ever paid it off, but instead stayed on I/O, the interest payment last year, for the whole year, would have been around £150.

To rent a similar property last year would have cost around £12,000.

If lifetime I/O mortgages were available, renting from the bank would be far cheaper than renting from a landlord.

Past performance, and all that.

HAMISH_MCTAVISH

DervProf wrote: »

Past performance, and all that.

Living in an inflationary monetary system and all that.