Cash-strapped families switch £60bn-worth of mortgages to interest-only

wotsthat

Graham_Devon wrote: »

Well done for sticking by your guns!

Nice of you to tlel us once again what an article and the figures within actually mean.

I hope that's not the Royal 'us'. Seems like most contributors managed to grasp the article for what it was - a crap space filler.

It would have been more useful if the space had been left blank - at least it could have been used for doodles.

Graham_Devon

wotsthat wrote: »

I hope that's not the Royal 'us'. Seems like most contributors managed to grasp the article for what it was - a crap space filler.

It would have been more useful if the space had been left blank - at least it could have been used for doodles.

You didn't much care for the article then? Surprising.

ILW

Surely if you are overpaying it is not IO.

LydiaJ

It's IO if your standard monthly payment (ie what you HAVE to pay) is just the interest. If you choose to repay the capital as and when it's convenient, you have a lot more flexibility than with a repayment mortgage where your standard payment includes some capital repayment.

shortchanged_2

Pete111 wrote: »

Yep. Im one of those on an IO/offset and it's the best mortgage we;ve ever had. We've overpaid or offset north of 100k in the last 18 months. To get a similarly advantageous savings rate (after tax) we would be needing 6-7% so it's a real no brainer and totally flexible. ie if I need that 100k back in my current account I can get it - no bother.

Of course being on an IO mortgage and all, I basically weep myself to sleep every night with the worry...

That's fine Pete111 but most average folk don't have £100,000 in savings, so in your case it is sensible to have an offset mortgage.

This report is stating that many people are going onto IO mortgages due to affordability issues and that I'm afraid ain't good.

shortchanged_2

julieq wrote: »

So that leaves us where we were really. You're on the doorstep glassy eyed and wanting to get in, and me in my house wanting to go out to the garden.

Not exactly sure what this means but I suppose all I can say julieq is..................wake up and smell the coffee.

chucky

shortchanged wrote: »

This report is stating that many people are going onto IO mortgages due to affordability issues and that I'm afraid ain't good.

how many is many?

shortchanged wrote: »

wake up and smell the coffee.

how can you smell the 'coffee' if you don't know how many the many is?

shortchanged_2

chucky wrote: »

how many is many?

how can you smell the 'coffee' if you don't know how many the many is?

Another classic chucky repsonse. Read the report chucky, the information is on there. :wall:

chucky

shortchanged wrote: »

Another classic chucky repsonse. Read the report chucky, the information is on there. :wall:

well i was trying to get some more info out of you to see if you actually understood what the article actually meant...

let's do the basics for you... from the article.

Up to 300,000 cash-strapped households have switched more than £60bn of mortgage debt from repayment into risky interest-only deals over the past three years to help cover their living costs.

that would be £60,000,000,000 right... with 300,000 mortgage owners switching to interest only. that would be an average mortgage of £200,000. ok fine.

then the next paragraph says that the average mortgage is £109,000

With the average UK mortgage at £109,000

so which is right?

so when i try to smell the coffee i can't really because the article is rubbish and as for your intelligence... let's just leave that one there. nuff said on that one

shortchanged_2

Mr Winder added: "Non-discretionary spending [such as food, petrol and tax] is rising considerably more quickly than incomes. Therefore, there is a natural incentive to move to interest-only products."

I don't know if it's just me or something but this seems to indicate that some people are having affordability issues.