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MSE News: Interest-only mortgages on critical list as Co-op pulls plug
Comments
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Is it only £120bn? Not sure what the fuss is. Especially as most of those people will now be able to work for longer.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0
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Hi, as someone who has an IO mortgage with 17 yrs to run, I want to take action but can't decide whether it makes more financial sense to change to repayment, which our mortgage co have agreed to & will increase my mortgage by £400 per month OR put £400 per month into an ISA? Advice anyone?0
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If it's a cash ISA will it return more than the mortgage rate of interest over the term of the mortgage? Probably not.
If it's a stocks and shares ISA will it return more than the mortgage rate of interest over the term of the mortgage? If you're financially astute then possibly yes, if you're not then you could end up with less than you put in.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0 -
Hi, as someone who has an IO mortgage with 17 yrs to run, I want to take action but can't decide whether it makes more financial sense to change to repayment, which our mortgage co have agreed to & will increase my mortgage by £400 per month OR put £400 per month into an ISA? Advice anyone?
A third alternative is to keep your mortgage on IO and make overpayments. At least you'll then have the flexibility of an IO mortgage when you need it - i.e. if you lose your job and need to eek out your emergency savings.0 -
RenovationMan wrote: »Are you really saying that you believe that ALL IO mortgages that are due for repayment in the next decade are without any form of repayment vehicle and will remain that way for the next decade?
Really? :eek: :rotfl:
No. Even at 30% of the figure its a sizable sum in the context of current lending policy though.0 -
Is it only £120bn? Not sure what the fuss is. Especially as most of those people will now be able to work for longer.
I agree a £120 billion is a small sum in the context of the overall current financial situation. To put the amount in perspective. Hester has already shrunk RBS's balance sheet by £700bn since taking office, and hasn't finished yet.0 -
Thrugelmir wrote: »No. Even at 30% of the figure its a sizable sum in the context of current lending policy though.
Are you now saying that 30% of all IO mortgages that are due for repayment in the next decade are without any form of repayment vehicle and will remain that way for the next decade?0 -
RenovationMan wrote: »Are you now saying that 30% of all IO mortgages that are due for repayment in the next decade are without any form of repayment vehicle and will remain that way for the next decade?
All mortgages ultimately have a repayment vehicle. By selling the house.
Savings data shows a decline in investment in S&S ISA's so not sure what other vehicles are available.0
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