The homeowners who cannot move home

Thrugelmir

Originally Posted by HAMISH_MCTAVISH
....It's more like 35%, but many of those have repayment vehicles.....

The 43% figure is based on a recent survey of CML members. So covers majority of UK mortgage lending.

With regards to those with repayment vehicles. Standard Life estimate that of 104,000 endowment policyholders that are due to mature in the next 10 years. Around 100,000 will have shortfalls on their policies.

C_Mababejive

Too bad. I'd like a red Ferrarri and a villa in the Tuscan hills but thats not going to happen either. At least they have a home.

jfh7gwa

Loughton_Monkey wrote: »

So....

1. Precarious financial situation.
2. Want to start a family.

I suggest that they shouldn't have spent so much on the lobotomy.....

The two don't pose that much of a problem to some (example).

themull1

I remember when the self employed could lie about what they earned and borrow accordingly. They can't really complain now.

HAMISH_MCTAVISH

Thrugelmir wrote: »

The 43% figure is based on a recent survey of CML members. So covers majority of UK mortgage lending.

No, you're making stuff up again.

The latest comprehensive CML research paper on the topic covers the full year of 2011 and was published in March 2012.

It shows 34.8% of mortgages are interest only.

With regards to those with repayment vehicles. Standard Life estimate that of 104,000 endowment policyholders that are due to mature in the next 10 years. Around 100,000 will have shortfalls on their policies.

And those shortfalls will be, on average, tiny.

Not to mention, most will be able to cover any shortfall from alternate funds, such as inheritance and savings.

Here's what the CML has to say about the topic....

"The interest-only loans scheduled to mature in the next few years are, on average, comparatively low value.

Overall, we therefore think that the "ticking time bomb" is overstated as a description for the vast majority of interest-only mortgages due to mature in the next few years.

The proportion of borrowers unable to repay their mortgage at term is likely to be small"

brit1234

It doesn't matter to me if first time owners refuse to sell (even though they will be eventually with the Euro Crisis). I'm looking to go straight to a second leg home for a family and saving well.

It would be interesting to see the shared ownership % who can't sell compared to the others. I'm sure it will be far higher.

In the mean time prices will continue to fall and there will always be those forced to sell especially as forbearance weakens.

Graham_Devon

HAMISH_MCTAVISH wrote: »

No, you're making stuff up again.

The latest comprehensive CML research paper on the topic covers the full year of 2011 and was published in March 2012.

It shows 34.8% of mortgages are interest only.

Sorry to be pedantic, but no one is making stuff up.

You are ignoring the BTL figures. 43% of ALL outstanding mortgages are interest only.

35% of all residential mortgages are interest only.

Don't accuse people of lying when what they stated is true. If you are going to use repayment vehicle statistics and ignore that those very statistics cover ALL interest only mortgages, the only person telling porkies, is you.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Sorry to be pedantic, but no one is making stuff up.

You are ignoring the BTL figures. 43% of ALL outstanding mortgages are interest only.

35% of all residential mortgages are interest only.

Don't accuse people of lying when what they stated is true.

Source?

You need to show me a link to your evidence that 45% of total mortgages are interest only.

Because the document I sourced from.....

http://www.cml.org.uk/cml/publications/newsandviews/110/411

.....does not say anywhere it excludes BTL mortgages.

If you are going to use repayment vehicle statistics and ignore that those very statistics cover ALL interest only mortgages, the only person telling porkies, is you.

Again, source?

Graham_Devon

HAMISH_MCTAVISH wrote: »

Source?

You need to show me a link to your evidence that 45% of total mortgages are interest only.

Because the document I sourced from does not say anywhere it excludes BTL mortgages.



Again, source?

Source I believe was the FSA. I'm not gonna spend time trawling through the internet just to show you.

One quick google shows that figures everywhere state 43%.

The 35% was from 2007 anyway.

I did on quick search. Here, eat your heart out:

These mortgages are a big problem for lenders. They account for 36% of all mortgages outstanding (43% if you include buy-to-let mortgages). During the next ten years, 1.5 million interest-only mortgages with a value of £120bn (10% of all outstanding mortgages) are due to be repaid. How?

Source: Media article based on CML figures.

If you simply opened your eyes, took your blinkers off, you'd be able to do the same search and come to the same conclusions yourself. Apparently I'm just the armchair economist, while you are the genius...so howcome even I know this stuff and you apparently don't?

justjohn

themull1 wrote: »

I remember when the self employed could lie about what they earned and borrow accordingly. They can't really complain now.

Self certs lovely chubbly lol .....Any different to libor or the other bank scandals ...NO lol or the MP's at the fiddle, no lol

LIE- NOT AT ALL. Bend the truth maybe...lol

And you mess up you pay the piper.