Windfall fears for over 1m interest only mortgage holders

Graham_Devon

HAMISH_MCTAVISH wrote: »

Eh?

Where does it say a million are "in trouble"?

If they were really "in trouble" they would be struggling to pay the mortgage.

They're not.

They may have to remortgage on a repayment deal in XX number of years, or they may have to save a bit more, or they may just sell up and take the cash, knowing they've saved a fortune versus renting instead for all these years and got a nice little lump sum at the end.

Complete nonsense, as always Graham.:(

Strawman. I put trouble in quotes for a reason. Clearly there are over 1 million people with IO mortgages who are going to have problems paying for the house. (That's why there is an article in the national news). Trouble, problems....call it what you like.

OK, so you are not going to answer any of my points raised, and are instead going to reign in on a technicality to ignore it.

So lets move on...

Let's suggest I have read your posts, figured out buying on IO is actually better than renting.

As a renter I have changed my mind and it's all thanks to you...I've seen the light!

So, can you tell me where I can get a IO mortgage please? Your calculations make it look pretty profitable going forward.

Thanks in anticipation

Percy1983

I will say I saw a thing about this on the news.

It did have the poor chap who couldn't afford what he signed up for, fair enough.

But then his name appeared with the sub heading 'home owner', how is he a home owner when he doesn't even have 1p against the house?

Mr._Pricklepants

Percy1983 wrote: »

But then his name appeared with the sub heading 'home owner', how is he a home owner when he doesn't even have 1p against the house?

Haha, hilarious.

But isn't that more or less the same as you calling yourself a home owner after a couple of mortgage payments?

Percy1983 wrote: »

I am a home owner and parties involve music, vodka and dancing... mostly.

Percy1983 wrote: »

I am a home owner and I would run in the opposite direction if encountered you.

Graham_Devon

Picking on percy again Prickly!?

Mr._Pricklepants

Graham_Devon wrote: »

Picking on percy again Prickly!?

HAMISH_MCTAVISH

Graham_Devon wrote: »

So, can you tell me where I can get a IO mortgage please? Your calculations make it look pretty profitable going forward.

Thanks in anticipation

Oh, you can't.

The banksters and landlords now have you by the short and curlies, and they're going to radically increase your lifetime housing costs thanks to ill-advised political interference.

Hope the anticipation was worth it.

Percy1983

Mr._Pricklepants wrote: »

Haha, hilarious.

But isn't that more or less the same as you calling yourself a home owner after a couple of mortgage payments?

As it is I got my first mortgage statement and I do now have £11k of equity so thats enough for me to claim home owner status.

I will say you could argue that you should use the term unless you have paid the whole mortgage but then there would be very many home owners at all.

I suppose its quite simple, in the case of an interest only mortgage you have the same stake as a renter has... nothing, so how can you be a home owner?

Graham_Devon

HAMISH_MCTAVISH wrote: »

Oh, you can't.

So you admit that, as you can't get such a product, your calculations based on such a product going forward are spurious as best!?

RUN_RABBIT_RUN

GhIFA wrote: »

Total non-story: Report also states that 90% of IO borrowers have repayment strategies in place, 75% are confident that these plans are on track to repay the mortgage at the end of the term.

Trying to make the issue emotive by bringing in the issue of what you would say to someone who has had their house repossessed is a red herring - Quoting the author of the report:

So repossessions are at very low levels amongst a group that only make up 10% of the customer base. And to be brutally honest, in most cases, anyone reaching the end of the term in this position has to place most of the blame solely at their own front door.

The author has also said that the ""interest-only timebomb" would fail to materialise"

this post explains everything you need to know about this latest media squawk over such a non-story

very amusing to see the usual suspect(s) on this thread getting themselves so lathered up on what was a satirical take on the story though. here's a link for you -

http://en.wikipedia.org/wiki/Satire

GhIFA

Graham_Devon wrote: »

ISTL... How many people rent, privately, without housing benefit, for 25 years?

I'm not asking for absolute figures, just your thoughts really? Handful? A few? Lots?

I know my thoughts, and the only people I know that have rented for even a decade or more are either getting help through housing benefits or are in council housing.

I don't know anyone who's rented for a decade or more privately out of choice.

I'm wondering if you do? And if you care to extrapolate that across the country?

If not...why do we assume people rent for 25 years out of choice to calculate how much better off someone on IO will be?

Seems a very pointless calculation when the group of people you are suggesting IO owners are better off against is incredibly small.

I could quite as easily turn around and calculate that someone who lives with their parents all their life and inherit the house when their parents pass are better off than someone who bought. It's pretty pointless though....although there are such people out there.

Graham, how many people will have their homes repossessed at the end of their mortgage terms because they have made no provision for repaying the capital?? I'm not asking for absolute figures, just your thoughts really? A handful?, a few?, lots?

I know my thoughts.

I only ask because the report shows it will be hardly any, yet for some reason, you've taken this thread (which was obviously written as a tongue in cheek response to the overly negative reporting of the FCA review) into the realms of repossessions and a million households being in "trouble", for reasons that seem to be as spurious as you accuse others of being.

Read the report, put the figures in their real context and you'll see things are not as bad as you seem to want them to be. (by the way, I'm no "HPI nutter", just someone that has looked at the report and taken a balanced view based on the facts it presents).