Lazy repost - Interest only, the ticking timebomb say Daily Mail

wotsthat

Graham_Devon wrote: »

By that theory, every single person who took out an IO mortgage has a plan. That's great eh, how you can come to such conclusions.

Different strokes for different folks. But it's all getting a little silly now.

Here's where it gets silly. It's you interpreting what I've said (deliberately) wrongly, taking the argument to an extreme and then trying to make out I'm saying that all IO mortgages have repayment plans. I didn't say that.

shortchanged_2

wotsthat wrote: »

I'm not answering because I think he said his mortgage is £26k less than if a typical repayment mortage had been used.

I'm not sure I saw a claim that IO had improved his net worth by £26k.

Well how the hell do you think he got to that point? Did the £26K just evaporate into thin air?

He fails to mention that if he payed the same monthly payments towards an IO mortgage or a repayment mortgage the end result would be pretty much exactly the same.

RenovationMan

wotsthat wrote: »

I'm not answering because I think he said his mortgage is £26k less than if a typical repayment mortage had been used.

I'm not sure I saw a claim that IO had improved his net worth by £26k.

I'd give up with shortchanged, he asks a question and then when you answer it he changes the parameters and asks you again. He repeats this until you get bored and give up, then he sits back and concludes that he has 'won' the argument. :rotfl:

I see above that he has already changed his parameters.

Graham_Devon

wotsthat wrote: »

Here's where it gets silly. It's you interpreting what I've said (deliberately) wrongly, taking the argument to an extreme and then trying to make out I'm saying that all IO mortgages have repayment plans. I didn't say that.

If anyones misinterpreting it's you. I didn't say you had said it. I just stated by that theory you could suggest. "You" doesn't mean you personally. It means someone. I'm sure you understand the use of the English language.

So don't get all uppity on me with the misinterpretation nonsense.

shortchanged_2

RenovationMan wrote: »

I have no 'recognisable' mortgage repayment vehicle according to the FSA and yet three years into my mortgage I am already 3 years ahead of someone on a comparable repayment mortgage.

Wrong!!

You would be in exactly the same position now if you pay the same monthly amounts towards the different mortgages. You fail to mention that you can overpay a repayment mortgage as well.

RenovationMan

Graham_Devon wrote: »

it does compute. But you keep painting the picture that everyone else is like you.

Clearly they are not.

The BOE figures also back this up!

The BoE/FSA figures just show that 80% of IO mortgage holders have no recognised vehicles. I'm in this 80% and yet I do have a repayment vehicle that is working better than a repayment mortgage.

The BoE / FSA have never been in touch with me to ask how I was going to pay for my IO mortgage. I suspect that I am not alone in this, so I conclude that the BoE/FSA have no idea how many of the 80% really do have repayment vehicles. They only have details of the 20% that have repayment vehicles registered with their mortgage providers.

RenovationMan

shortchanged wrote: »

Wrong!!

You would be in exactly the same position now if you pay the same monthly amounts towards the different mortgages. You fail to mention that you can overpay a repayment mortgage as well.

:rotfl::rotfl::rotfl::rotfl:

shortchanged_2

RenovationMan wrote: »

:rotfl::rotfl::rotfl::rotfl:

You are making yourself look a plonker now Renoman.

wotsthat

shortchanged wrote: »

Well how the hell do you think he got to that point? Did the £26K just evaporate into thin air?

He fails to mention that if he payed the same monthly payments towards an IO mortgage or a repayment mortgage the end result would be pretty much exactly the same.

You've lost me now on the £26k. I thought it was just an additional overpayment from income rather being generated by virtue of having an IO mortgage.

I think the point was that with IO there's an option to make zero capital repayments and use that instead for renovations. The end result is a similar mortgage balance but despite that, one method, is prudent, moral and sensible and the other is a massive gamble with his family's future.

DervProf

shortchanged wrote: »

Wrong!!

You would be in exactly the same position now if you pay the same monthly amounts towards the different mortgages. You fail to mention that you can overpay a repayment mortgage as well.

To both of you, it's all about interpretation.

What is more worth debating is that RM is saying that because he is a "good" IO mortgage holder, then IO mortgages are OK. OK, he's not actually claiming that, but he is making a case for IO.

What others are saying is that IO mortgages can be a "dodgy" financial product. The fact is that we have one "concrete" (if he's telling the truth) example, RM, who shows how to use an IO mortgage, but we don't have anyone here who is in the ess H eye tea with such a mortgage. And that's hardly suprising, not because nobody every gets into trouble with IO mortgages, but because people will tend to "crow" when things re going well for them, but stay quiet when things take a turn for the worse.