We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
whats going to happen in years to come with interest only mortgages?
scousedave
Posts: 229 Forumite
The title says it all......with so many people only managing to pay their mortgages on interest only and no savings plan any thoughts when these mortgages come to the end of their period and have to be repaid?
0
Comments
-
-
scousedave wrote: »The title says it all......with so many people only managing to pay their mortgages on interest only and no savings plan any thoughts when these mortgages come to the end of their period and have to be repaid?
How many is "so many".0 -
Sell for a nice profit most likely0
-
Sell up, repay the debt, find somewhere else to live."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Sell up, repay the debt, find somewhere else to live.
Mind you we do hear quite a few sob stories about the little old dears in their £400,000 houses on an interest only mortgage and the nasty old banks are threatening to kick them out because their mortgage term has expired and they can't pay back the capital.
However there are of course many on here who believe that an IO mortgage should run indefinitely and that a mortgage 'term' shouldn't mean anything.
Why a mortgage contract shouldn't be treated the same as any other contract I'll never know.0 -
shortchanged wrote: »Mind you we do hear quite a few sob stories about the little old dears in their £400,000 houses on an interest only mortgage and the nasty old banks are threatening to kick them out because their mortgage term has expired and they can't pay back the capital.
However there are of course many on here who believe that an IO mortgage should run indefinitely and that a mortgage 'term' shouldn't mean anything.
Why a mortgage contract shouldn't be treated the same as any other contract I'll never know.
Sorry to hear about the old girl - tough.
They are legally enforceable if you don't meet the terms. When they end they end. I am sure some lenders may be happy to renew/extend for a price."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Chances are the capital is only about £30 or £40k and the kids will take out a loan.shortchanged wrote: »Mind you we do hear quite a few sob stories about the little old dears in their £400,000 houses on an interest only mortgage and the nasty old banks are threatening to kick them out because their mortgage term has expired and they can't pay back the capital.
However there are of course many on here who believe that an IO mortgage should run indefinitely and that a mortgage 'term' shouldn't mean anything.
Why a mortgage contract shouldn't be treated the same as any other contract I'll never know.
Turns out that IO was a pretty good move, especially if compared to renting.0 -
scousedave wrote: »The title says it all......with so many people only managing to pay their mortgages on interest only and no savings plan any thoughts when these mortgages come to the end of their period and have to be repaid?
They'll be laughing all the way to the bank. The same bank that has been renting them a house on the cheap for 2.5 decades.0 -
scousedave wrote: »The title says it all......with so many people only managing to pay their mortgages on interest only and no savings plan any thoughts when these mortgages come to the end of their period and have to be repaid?
Most will pay back the capital. Those who have made no plans will more than likely have to sell their house.I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.0 -
Personally I will be very miffed when I have to pay back all that lovely money that the bank is currently giving me at a very cheap rate which I can then 'invest' (in a risk free savings account) with another bank and make a tasty profit on the spread.
Haven't we done this topic to death on the board already?I think....0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards