Tumbling mortgage demand

shortchanged_2

RenovationMan wrote: »

Nah, that's what you've changed it to because even mild mannered board members, such as purch were laughing at your absurdity. I must admit it was amazingly funny.

We were discussing 2 identical mortgages, one repayment and one IO and the fact that the IO mortgage would be much more secure during financial difficulties than repayments.

However, I'm happy that you seem to have mulled it over and have come around to the right sort of thinking.

In your dreams.

RenovationMan

shortchanged wrote: »

In your dreams.

So you're sticking to the position that, all other things equal, a repayment mortgage is safer than an IO mortgage when someone hits financial difficulties?

Just so we know...

shortchanged_2

RenovationMan wrote: »

So you're sticking to the position that, all other things equal, a repayment mortgage is safer than an IO mortgage when someone hits financial difficulties?

Just so we know...

I have always made the point of this being people who stretched themselves to their financial limits on the different types of mortgages.

So if I took a £700 IO mortgage or a £700 repayment mortgage, yes I would have a cheaper/smaller house with the repayment mortgage but if I suddenly found myself in the financial sh*t, on the repayment mortgage I would at least have the chance of temporarily reducing my outgoings by going IO for a period of time.

What would I do if I was on IO from the start?

Is it really that difficult to understand Renoman?

nearlynew

There is no point in arguing with McTittish.
(Which is why I don't bother).

All he wants is to be able to borrow more money. He does not care how this happens, or understand the implications.

RenovationMan

shortchanged wrote: »

I have always made the point of this being people who stretched themselves to their financial limits on the different types of mortgages.

So if I took a £700 IO mortgage or a £700 repayment mortgage, yes I would have a cheaper/smaller house with the repayment mortgage but if I suddenly found myself in the financial sh*t, on the repayment mortgage I would at least have the chance of temporarily reducing my outgoings by going IO for a period of time.

What would I do if I was on IO from the start?

Is it really that difficult to understand Renoman?

You're comparing apples and pairs and you know it. Stop dodging the argument and stop making up cases like:

"If I had a £1M IO mortgage or a £20k Repayment mortgage, then if I lost my job I'd be safer on the repayment mortgage. There!!! I have proven my point, repayment mortgage are safer and more flexible than IO!!!!!" :cool:

The question before you is; all things being equal (i.e. mortgage size, mortgage term, etc.), would you agree that an IO mortgage is safer and more flexible than a repayment mortgage because you can stop making overpayments onto the mortgage or into a repayment vehicle until you get back on your feet, helping to make your emergency money go further.

There I can't make the question any simpler. It's "yes" or "no" by the way. If you answer "no", then please explain why, but PLEASE don't climb on your soapbox about £1M vs £20k for goodness sake or we'll all know you're trying to dodge the question.

shortchanged_2

RenovationMan wrote: »

You're comparing apples and pairs and you know it. Stop dodging the argument and stop making up cases like:

"If I had a £1M IO mortgage or a £20k Repayment mortgage, then if I lost my job I'd be safer on the repayment mortgage. There!!! I have proven my point, repayment mortgage are safer and more flexible than IO!!!!!" :cool:

The question before you is; all things being equal (i.e. mortgage size, mortgage term, etc.), would you agree that an IO mortgage is safer and more flexible than a repayment mortgage because you can stop making overpayments onto the mortgage or into a repayment vehicle until you get back on your feet, helping to make your emergency money go further.

There I can't make the question any simpler. It's "yes" or "no" by the way. If you answer "no", then please explain why, but PLEASE don't climb on your soapbox about £1M vs £20k for goodness sake or we'll all know you're trying to dodge the question.

You're making things up now Renoman.

I've always been against the fact that IO mortgages were abused to buy bigger properties than people could genuinely afford, hence my example.

I have in discussions in the past accepted that someone in your position who can obviously afford the repayment equivalent of your mortgage is fine.

DervProf

RenovationMan wrote: »

The question before you is; all things being equal (i.e. mortgage size, mortgage term, etc.), would you agree that an IO mortgage is safer and more flexible than a repayment mortgage because you can stop making overpayments onto the mortgage or into a repayment vehicle until you get back on your feet, helping to make your emergency money go further.

There I can't make the question any simpler.

Well you could actually.

You are suggesting that the IO mortgage holder is making overpayments. I'd say there is a risk that the IO mortgage holder might, at some time during the mortgage term, decide to stop making overpayments and spend the money saved. They may even decide to use the money to take on a car loan, or some other debt.

If you want a yes or no answer, you need to give more information in your question. You need to state that the person with the IO mortgage has been making regular overpayments. If that is the case, then yes, the IO mortgage is a better bet, as it gives the option of reducing overpayments in case of financial difficulties.

chewmylegoff

No one cares about your legendary internet battle regarding interest only mortgages. Get a room.

shortchanged_2

chewmylegoff wrote: »

No one cares about your legendary internet battle regarding interest only mortgages. Get a room.

Thanks. Unfortunately Renoman decided he had to bring it into this discussion.

chucky

HAMISH_MCTAVISH wrote: »

He's getting rather good at that.

I've lost count of the number of questions he's ignored in this thread alone.

Shortround does this frequently and avoids answering the questions that require some thought. According to him, 30%/40% of mortgages on the lenders SVR's rate means that the majority of UK mortgages are on SVR'S rates. Very strange.