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Cash-strapped families switch £60bn-worth of mortgages to interest-only
Comments
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It doesn't take much thought to conclude that the people that have to switch to IO are likely to have larger mortgages.
I would 100% disagree, the people most likely to be allowed to switch to IO would be people who have lost jobs or have had short term changes of circumstance. Jobs losses are not in the main aimed at people with larger mortgages.
Someone who could not afford a house and had not had any change of circumstance (EG massive debts are overwhelming them) would be more likely to be made foreclose because there is little chance of a turn a round.0 -
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"We won't make Jones redundant, he has a large mortgage".
:rotfl:
That's exactly my point, people get made redundant regardless of circumstance. That is is why I disagree it is more likely the people switching to IO are more likely to have a mortgage nearly twice the national average.0 -
How about someone with a larger mortgage being more prone to falling behind with their payments (and more quickly) in the event of being layed off work, short of work, or even due to other financial commitments ?
How about lenders willingness to switch to IO. I don't know, but would a lender be more or less willing to switch someone with a large mortgage onto IO, than someone with a smaller mortgage ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
How about someone with a larger mortgage being more prone to falling behind with their payments (and more quickly) in the event of being layed off work, short of work, or even due to other financial commitments ?
How about lenders willingness to switch to IO. I don't know, but would a lender be more or less willing to switch someone with a large mortgage onto IO, than someone with a smaller mortgage ?
I think they are obliged at the moment regardless of the size of the mortgage to switch to IO or a payment break( if they have over paid) providing it is circumstantial.
In reality in the event of redundancy it would be the first expense you would look to restructure regardless as it is in nearly all cases it is the largest debt.
Could it be down to perhaps a lot of restructures have been aimed at higher management or in the city?
Someone with a larger mortgage would fall behind as fast as someone with a smaller mortgage in reality as mortgage debt is in the main based on affordability so someone with a smaller mortgage is also more likely to have a smaller income.0 -
Someone with a larger mortgage would fall behind as fast as someone with a smaller mortgage in reality as mortgage debt is in the main based on affordability so someone with a smaller mortgage is also more likely to have a smaller income.
Someone with a smaller income/mortgage is more likely to be able to find another job that will pay enough to keep up with their mortgage payments than a high(ish) flyer who has a large mortgage.
For example......
£50K mortgage could be maintained with a £15K salary.
What kind of income would you need to keep up with a £180K mortgage ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Someone with a smaller income/mortgage is more likely to be able to find another job that will pay enough to keep up with their mortgage payments than a high(ish) flyer who has a large mortgage.
For example......
£50K mortgage could be maintained with a £15K salary.
What kind of income would you need to keep up with a £180K mortgage ?
Sorry I cant agree. It ignores so much and past recessions says it is the same for all, infact it tends to be harder for the unskilled than the skilled.
Unless you think all those who have been laid of on low paid work have found work easily this recession.0 -
I would 100% disagree, the people most likely to be allowed to switch to IO would be people who have lost jobs or have had short term changes of circumstance. Jobs losses are not in the main aimed at people with larger mortgages.
LOL. Yes, because if they have lost their jobs and can't afford their monthly payments, they will be able to afford IO payments, without a job.
That makes far more sense than switching people who are simply struggling to pay on remortgage, so switching them to IO allows them to at least pay the mortgage.
LOL. This place!!! Same people have to disagree with the same people no matter what!!0 -
Graham_Devon wrote: »LOL. Yes, because if they have lost their jobs and can't afford their monthly payments, they will be able to afford IO payments, without a job.
That makes far more sense than switching people who are simply struggling to pay on remortgage, so switching them to IO allows them to at least pay the mortgage.
LOL. This place!!! Same people have to disagree with the same people no matter what!!
Are you really laughing out loud.
And are you really suggesting a smaller mortgage and no job is easier to repay?
Why not quote the next paragraph.Someone who could not afford a house and had not had any change of circumstance (EG massive debts are overwhelming them) would be more likely to be made foreclose because there is little chance of a turn a round.
Can you debate or are you just a full time village idiot who has to use Lol and
all the time.:rotfl:
It is fairly clear what I said.0 -
Sorry I cant agree. It ignores so much and past recessions says it is the same for all, infact it tends to be harder for the unskilled than the skilled.
Unless you think all those who have been laid of on low paid work have found work easily this recession.
I think it's just as difficult for someone on £60K to find work if they've been laid off as it is for someone on £18K (if not harder).
I think that losing a £60K job, and having a £200K mortgage is more likely to require a swift switch to IO, than someone losing a lower paid job with a smaller debt. A £200K mortgage is going to be harder to maintain if you lose your job than a £50K mortgage. There are many more jobs that pay enough to maintain a £50K mortgage than a £200K one.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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