Mortgage lending up on a year ago, says CML

RenovationMan

shortchanged wrote: »

Well for starters your example is disingenuous because if you put the same amount of money towards a repayment mortgage as an IO the difference would be nowhere near what you state. i.e £10,000 off the balance as opposed to £50,000.

How can the truth be disingenuous? I've given you the figures that are actually related to my actual mortgage, not some theoretical example heavily slanted to suit my argument, as is often found on here.

shortchanged wrote: »

Lets look at your example. I don't know your exact figure so let's look at this.

"Let's look at your example, erm, actually let's not, let's look at something else as I can't heavily slant your real world example to suit my argument"

As to the rest of your post, I got bored reading you theoretical question. I have to say that after you came up with the "IO mortgages are no use when you're in financial trouble, you should first use a repayment mortgage until you run out of emergency savings and then change to a IO mortgage" idea, I have severe difficulty in taking you seriously. :rotfl:

Of course, the trap I set you this time that you fell into is that there are no advantages to repayment mortgages over IO mortgages if you make overpayments that equal or exceed the capital payments you would make on a repayment. You basically have an IO mortgage that's a repayment mortgage, but the advantage of IO over repayment is that if you lose your job you can stop making the overpayments and not have to go cap in hand to the lender to ask them to convert your mortgage to IO or have them refuse and you end up with defaults on your credit record.

Thrugelmir

renovationman wrote: »

can you show your working out?

+6458+9894+10148 = £26,500

So you aren't as far ahead as you think you are.

Thrugelmir

Mr._Pricklepants wrote: »

Stamp duty holiday was introduced to kick start the fledgling FTB business. It's a sign of a significantly improving market that the stamp duty holiday is not extended.

Fewer new mortgages advanced in 2011 than 2009 or 2010.

RenovationMan

Thrugelmir wrote: »

+6458+9894+10148 = £26,500

So you aren't as far ahead as you think you are.

LOL. I see what you mean. :)

Only £23k ahead, I suppose.

shortchanged_2

RenovationMan wrote: »

LOL. I see what you mean. :)

Only £23k ahead, I suppose.

:rotfl::rotfl:

Do you not get what I'm saying?

Basically you would be barely any better off if you were on a repayment mortgage or an IO one.

Yes RenoMan I fell into your trap but it's not anything I haven't said before which is an IO mortgage and repayment mortgage are essentially the same if you put the same monthly payments towards the both.

What I don't like about IO mortgages is how they've been abused over the past few years and seen as a way to 'afford' a property. Basically the IO monthly payment was the max the person could afford, so basically the were maxed out on an IO mortgage and thus have no leeway if times get tough.

Your personal example is different because you are obviously able to afford the equivalent repayment mortgage and more.

It's just my example shows there is very little gain in having an IO mortgage over a repayment one if you put the same amount of money to each type a month.

Although you obviously think you would be better off by £23,000 :huh:.

MrRee_2

So, we can conclude that getting a Mortgage and jumping aboard the good ship of Home Ownership is something that every winner should aspire to?

Of, course, there are those for whom the world is a bit too scary to leave Mummy and a bit too rough for washed up old hippies

RenovationMan

shortchanged wrote: »

:rotfl::rotfl:

Do you not get what I'm saying?

Basically you would be barely any better off if you were on a repayment mortgage or an IO one.

Yes RenoMan I fell into your trap but it's not anything I haven't said before which is an IO mortgage and repayment mortgage are essentially the same if you put the same monthly payments towards the both.

What I don't like about IO mortgages is how they've been abused over the past few years and seen as a way to 'afford' a property. Basically the IO monthly payment was the max the person could afford, so basically the were maxed out on an IO mortgage and thus have no leeway if times get tough.

Your personal example is different because you are obviously able to afford the equivalent repayment mortgage and more.

It's just my example shows there is very little gain in having an IO mortgage over a repayment one if you put the same amount of money to each type a month.

Although you obviously think you would be better off by £23,000 :huh:.

We are both making the same point, that repaymnt mortgages are no different from IO mortgages if you make repayments. The only difference in our viewpoints is that you fail to see that an IO mortgage is more flexible during hard times.

You have acknowledged in the past that if someone on a repayment mortgage does get into financial troubles then they should go onto IO until they get themselves sorted. Whatyou always fail to acknowledge is that not all providers will allow their borrowers to do this.

I don't think I'm £23k better off, I just make the point (which has finally sunk in with you, so my £23k example clearly worked) that not every person with an IO mortgage gets it because they can't afford a repaymnt one and not every person without a 'recognisable' repayment vehicle is resting on their laurels, expecting a miracle to pay off the mortgage.

MrRee_2

IO Mortgages are powerful tools in the right hands ... and I mean in the hands of those who are disciplined and who understand repayment vehicles.

Of course, the vehicle could be the very property upon which the IO Mortgage is secured - over a 15 year period, this vehicle will always pay off the debt - ALWAYS.

MrRee_2

OH, hello Newbie Crash_Bang_Wally ...... you do seriously need help ... DUDE ...

shortchanged_2

RenovationMan wrote: »

We are both making the same point, that repaymnt mortgages are no different from IO mortgages if you make repayments. The only difference in our viewpoints is that you fail to see that an IO mortgage is more flexible during hard times.

Yes RenoMan this may well be true IF you can afford the equivalent repayment mortgage in the first place, but both you and I know this was not the case in the previous decade and that many people were taking IO mortgages because it was the only way they could afford the payments on that mortage for a property.

So basically what I am saying is that IO mortgages have been abused over the past decade and they have helped make properties 'affordable' to some when they aren't really.

My other dislike for IO mortgages is that because they haven't been properly monitored over the past few years it was all to easy for someone to say, 'look, here is my repayment vehicle' only to stop paying into it after the mortgage has been obtained.

Can you see why now I have a dislike for IO mortgages?

It does look like the FSA have now addressed this issue in that someone must be able to afford the equivalent repayment mortgage which is of course a step in the right direction.