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Cash-strapped families switch £60bn-worth of mortgages to interest-only
Comments
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well if posts like this are anything to go by, i must be very right then and you very wrong...Graham_Devon wrote: »Do you understand it?
The debt on a repayment mortgage is larger because you are repaying the capital aswell as the interest.
The debt on an interest only mortgage will be lower, because you are only paying the interest.
Therefore switching the debt from repayment to interest only turns an average 200k debt to an average 109k debt.
That will be the reason for the difference. That's why the payments become smaller.
Pretty poor chucky, for someone who questions everyone elses intelligence.Yes, chucky spends a fair amount of time telling people they are morons, thick, wrong, and diverting attention (Graham seems to be a main target).
could someone run this by me again and how that works pmslTherefore switching the debt from repayment to interest only turns an average 200k debt to an average 109k debt.0 -
They may have "hashed together" these stats, but they are relevant.
It demonstrates that those with larger mortgage balances are the ones who are switching to IO. It is perfectly reasonable for the article to compare the average mortgage of someone "struggling" with the avergage mortgage overall. It gives an indication of the kind of borrowers that may be struggling. Yes, it is open to interpretation, but at least with these figures, the reader can get an idea what is happening.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
i just did in the next post.Graham_Devon wrote: »Call me thick in response if you like.
but feel free to contribute and explain your new found theory on averages that the Devonian Institute of Economic Theory has discovered...
explain this bit of nonsense please?Graham_Devon wrote: »Therefore switching the debt from repayment to interest only turns an average 200k debt to an average 109k debt.0 -
there is no proof of this, that's the point. they've taken a trend and applied it to the current mortgage numbers saying that these are striggling.They may have "hashed together" these stats, but they are relevant.
It demonstrates that those with larger mortgage balances are the ones who are switching to IO. It is perfectly reasonable for the article to compare the average mortgage of someone "struggling" with the avergage mortgage overall. It gives an indication of the kind of borrowers that may be struggling. Yes, it is open to interpretation, but at least with these figures, the reader can get an idea what is happening.0 -
the article says the average UK mortgage is £109k. it says the average mortgage of someone on interest only and 'struggling' is £200k. it makes no sense as they've hashed together data that aren't linked and come up with a theory, not factual data but a theory.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.
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
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
You didn't mention anything about them "having hashed" together anything. You were claiming that they were contradicting themselves with the two statistics. I simply tried to put you right.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
no, sorry you're talking rollox for a change.Graham_Devon wrote: »Sure.
If you take an interest only mortgage on a house worth 150k, over 25 years at 5%, the total outstanding mortgage will be £187,500.
Do the same with a repayment mortgage and the total outstanding mortgage will be £266,000.
Take 10 people with repayment mortgages on the above. They have a combined oustanding debt of £2,660,000.
If those 10 people switch to interest only, they have a combined outstanding debt of £1,875,000.
Therefore average debt has reduced.
Anything else you would like explaining, please, just ask and I will be happy to help.
that's not how a mortgage portfolio is worked out. a mortgage debt amount is a mortgage debt amount. if it's £100k it's £100k it doesn't change unless repayments are made or a further loan is taken out on it.
you're trying to describe something completely different which has little to do with this.
feel free to come back to me with some more twisting and squirming to try and ignore the fact you don't have a clue what you're talking about.0 -
no, sorry you're talking rollox for a change.
that's not how a mortgage portfolio is worked out. a mortgage debt amount is a mortgage debt amount. if it's £100k it's £100k it doesn't change unless repayments are made or a further loan is taken out on it.
you're trying to describe something completely different which has little to do with this.
feel free to come back to me with some more twisting and squirming to try and ignore the fact you don't have a clue what you're talking about.
I deleted what I posted as I knew you would come back with what you did, and realised I was just handing you something to start with on a plate.
I was simply describing what you asked me to describe however. If I ignored it, you would accuse me of squirming. If I answer, you accuse me of talking about something else (even though you asked for it).0 -
put me right where?? i've just explained to you why the data contradicts itself. i think you're just trying to have a pop the sake of it dervprof.You didn't mention anything about them "having hashed" together anything. You were claiming that they were contradicting themselves with the two statistics. I simply tried to put you right.
the article is rubbish, you decided to tell me my intelligence is rubbish because i questioned both amounts and still you haven't explained to me why you are right and i'm wrong even though i explained why i think i'm right.
if it makes you feel better because i know your needs make you need to be made to feel better - you're right dervprof, chucky is wrong. does that make it better for you...0 -
there is no proof of this, that's the point. they've taken a trend and applied it to the current mortgage numbers saying that these are striggling.
I agree, but that wasn't my original point, for which I still haven't had an answer, just a swift change of direction.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
put me right where?? i've just explained to you why the data contradicts itself. i think you're just trying to have a pop the sake of it dervprof.
the article is rubbish, you decided to tell me my intelligence is rubbish because i questioned both amounts and still you haven't explained to me why you are right and i'm wrong even though i explained why i think i'm right.
if it makes you feel better because i know your needs make you need to be made to feel better - you're right dervprof, chucky is wrong. does that make it better for you...
The average of all mortgages is 109k.
The average of those struggling and converted to IO (the 300,000) is 200k.
There. Simple.0
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