Cheapest Houses since 1999

JonnyBravo

hallmark wrote: »

Sorry m8, wrong again lol. If you post enough you may get something right in the end altho I won't bank on it. I'd paid my mortgage off before I was 30, you just need to choose the right career & work hard at it. Highly amusing your a BTL landlord, that explains plenty. Squeaky bum in case the old IRs go up m8?

Of course you did. And now you spend your time playing online bingo. Live the high life eh?
If you want to think of me as a highly indebted landlord, go right ahead.
You seem to be full of stress. You need to be careful. Stress is a killer. Relax. Worry less. Have a nice bottle of wine. You could pay for it with your bingo money.

Thrugelmir

robmatic wrote: »

IO mortgages are held by consumption-a-holics won't be correct.

People by instinct will borrow as much as they are able. Not their fault. That's were regulation failed. However those with interest only are more likely to suffer NE due to the fact that no or little capital has been repaid.

Anybody with a 25 year repayment mortgage taken out in 2007 would have repaid 7.5% of the original capital balance in the 4 years since.

hallmark

JonnyBravo wrote: »

Of course you did. And now you spend your time playing online bingo. Live the high life eh?
If you want to think of me as a highly indebted landlord, go right ahead.
You seem to be full of stress. You need to be careful. Stress is a killer. Relax. Worry less. Have a nice bottle of wine. You could pay for it with your bingo money.

Lol that you think I'd take the trouble to lie to someone as insignificant you :rotfl::rotfl:

Don't knock the online gaming arena unless you've tried it m8, I can tell you that in the last 4 years I've made enough to pay for a modest house just in my spare time. Highly recommend it, but then I've always preferred to rely on my own endeavour than to have to rely on loans.


BTW wrong (yet again) on the stress front too, I'm beautifully chilled. Mind you if I had a BTL mortgage hanging over me I might be as stressed as you lol.

Le_Chuck

Thrugelmir wrote: »

People by instinct will borrow as much as they are able. Not their fault. That's were regulation failed. However those with interest only are more likely to suffer NE due to the fact that no or little capital has been repaid.

Anybody with a 25 year repayment mortgage taken out in 2007 would have repaid 7.5% of the original capital balance in the 4 years since.

I must be a bit odd then, as I do quite the opposite & avoid borrowing as much as I can

JonnyBravo

hallmark wrote: »

Lol that you think I'd take the trouble to lie to someone as insignificant you :rotfl::rotfl:

Don't knock the online gaming arena unless you've tried it m8, I can tell you that in the last 4 years I've made enough to pay for a modest house just in my spare time. Highly recommend it, but then I've always preferred to rely on my own endeavour than to have to rely on loans.


BTW wrong (yet again) on the stress front too, I'm beautifully chilled. Mind you if I had a BTL mortgage hanging over me I might be as stressed as you lol.

Your replies follow a rather boring and simplistic formula. I'm sorry to say I don't find your patter interesting, challenging or believable. You not even periphrastic enough in your insults to be entertaining.
I've seen you engage in a similar manner before and shall leave you to your angry world until I'm in a more forgiving mood and you entertain me again.

Grrrrrr... you big rough tough man you.

Double grrrrrr.

hallmark

Hahaha, big word alert lol. Did you swallow a dicktionary?

M8, I don't mind if you don't believe me. In fact it makes sense that you wouldn't since you need qualities to make decent money gaming that someone like you wouldn't even be able to conceive of.

Ironically I do believe you & that you're saddled with a mortgage. Cheer up, if you're lucky that BTL may still be worth what you paid for it when the 'ol IRs start to rise :rotfl::rotfl::rotfl:

julieq

hallmark wrote: »

If someone has an interest-only mortgage how is net debt being repaid?

Well not very many people do have interest only mortgages with no repayment vehicle, and the fact is that net debt is being repaid. You might not like that, but it's what's happening.

Anyway someone taking an interest only mortgage for 25 years is going to be a lot better off than someone paying rent over the same period. Worst case they sell at the end and they move into rented accomodation, but in most cases they'll have a backing investment or just have saved the repayment cash.

Incidentally it's financially naive to pay mortgage debt down. It's far better to hold onto the cash if you can and offset directly and indirectly, and particularly if you think prices are going to fall.

hallmark

julieq wrote: »

Well not very many people do have interest only mortgages with no repayment vehicle, and the fact is that net debt is being repaid. You might not like that, but it's what's happening.

Lol, why do you think I wouldn't like it, I don't recall caring less TBH? However you're wrong, PLENTY of people have IO mortgages with no repayment model in which case no net debt is being repaid. Not sure why you keep trying to claim that isn't happening.

julieq wrote: »

Anyway someone taking an interest only mortgage for 25 years is going to be a lot better off than someone paying rent over the same period. Worst case they sell at the end and they move into rented accomodation, but in most cases they'll have a backing investment or just have saved the repayment cash.

That's gibberish based on nothing. You don't know what's going to happen to house prices or interest rates over the next 25 years therefore you can't possibly back up your assertion. You may have an opinion of what'll happen but that's all it is, nothing more. Just for starters though, the "worst case" would actually be that house prices crashed, IRs went up, & suddenly they had huge negative equity which would they would still owe even if they were repossessed because they could no longer pay even an IO mortgage. Personally I think it's unlikely but that's not to say it couldn't happen.

julieq wrote: »

Incidentally it's financially naive to pay mortgage debt down. It's far better to hold onto the cash if you can and offset directly and indirectly, and particularly if you think prices are going to fall.

That just sounds like the sort of codswallop an IFA would tell someone TBH. But put me firmly in the camp of financially naive people who pay their debts off asap all day long. Incidentally if you think house prices are going to fall wouldn't it be a tad naive to buy in the first place....?

Thrugelmir

julieq wrote: »

Well not very many people do have interest only mortgages with no repayment vehicle,

So why the harder line instigated by the FSA is this not considered an issue?

Graham_Devon

julieq wrote: »

Well not very many people do have interest only mortgages with no repayment vehicle

Have you got proof of this?

Only Lloyds TSB themselves suggested the majority DON'T have repayment vehicles, and it was a big enough issue for Lloyds to re-check their entire interest only mortgage book and start contacting the owners for details of said vehicle. If they didn't have one, they were too encourage the owner onto a repayment mortgage.

FSA were also worried about it and were looking to take action.

Not sure what happened however, as it was one of those stories that did the rounds for a few days and then died out.

Found some information which goes completely against what you stated:

City watchdog the FSA's Mortgage Market Review in 2009 revealed that interest-only mortgages shot up as house prices boomed from 2002 to 2007, from 13% of those taken out to 33%. It added that: 'the vast majority had no repayment vehicle specified'.

And

The FSA has reported an increase in the proportion of interest-only mortgages where the lender was not aware of a dedicated repayment vehicle, even though the regulator is looking to clamp down on this type of lending.

The FSA’s annual product sales data, from April 2009 to March 2010, reveals that 19 per cent of mortgages sold were interest-only loans where the borrower did not have a designated repayment method or where the lender was not aware of one, compared to 15 per cent of mortgages the previous year. The overall proportion of interest-only mortgages reduced by 8.7 per cent to 28 per cent.

So who is naive?