whats going to happen in years to come with interest only mortgages?

antrobus

grizzly1911 wrote: »

Why does that result in two widely differeing figures for the average? More so if one is so wide of the mark....

Presumably because the average value of repeat house sales and the average value of house sales (including repeats) are two different things.

The purpose of the LR HPI is to measure changes in house prices. Fairly obviously, you can only do that where you've got something that has changed. So the LR HPI doesn't take account of first sales, whether they're new build, or first registration for that matter.

Also (fairly obviously) since the LR knows what prices new builds have been sold for, it can produce a different calculation that takes those into account, if you want to know that answer.

Neither figure is right or wrong. It depends on what question you want answered.

neverdespairgirl

OffGridLiving wrote: »

Are IO mortgages still available?

Yes - we've got an IO mortgage.

shortchanged_2

neverdespairgirl wrote: »

Yes - we've got an IO mortgage.

I think Offgrid struggled to get one. I'm not sure if he hit his 50% equity challenge in time.

OffGridLiving

neverdespairgirl wrote: »

Yes - we've got an IO mortgage.

Did you take it out recently?

Smallchanged is looking at using an IO mortgage to buy an investment property. I wasn't sure if they were available to new purchasers (at reasonable interest rates)?

neverdespairgirl

OffGridLiving wrote: »

Did you take it out recently?

Smallchanged is looking at using an IO mortgage to buy an investment property. I wasn't sure if they were available to new purchasers (at reasonable interest rates)?

About 18 months ago. 1.89% IO, from Lloyds. It could have been 1.99%. Can't remember off the top of my head. Max 60% LTV for the rate, and max 70% for IO on any rate.

OffGridLiving

neverdespairgirl wrote: »

About 18 months ago. 1.89% IO, from Lloyds. It could have been 1.99%. Can't remember off the top of my head. Max 60% LTV for the rate, and max 70% for IO on any rate.

I've got a repayment mortgage, so I'm not really that knowledgeable about IO mortgage availability, I have just seen press reports saying that they are harder to acquire. I dare say that if smallchanged is really interested in an investment property he can approach a mortgage broker for advice.

demystified

Dan: wrote: »

Sell for a nice profit most likely

Ha, if only. Bought this flat 6 years ago, had it valued recently and the price is exactly the same as I paid for it.

Probably paid over the odds for it but it was the only way to get it before the BTL brigade nabbed it, every other flat in the district is BTL.

I only got it because I was renting the flat opposite and the woman who owned it mentioned she was putting it up for sale so was straight down the estate agents and made an offer on it the same day and was accepted. I felt if I haggled a BTL'er would have snapped it up from under my nose.

I don't mind too much about the value, the mortgage is currently a 1/4 of what the valuation said the rent would be so I'm happy about that at least. :beer:

Cornucopia

OffGridLiving wrote: »

Smallchanged is looking at using an IO mortgage to buy an investment property.

IO is still alive and well for BTL. But almost impossible to get for residential.

ILW

demystified wrote: »

Ha, if only. Bought this flat 6 years ago, had it valued recently and the price is exactly the same as I paid for it.

Probably paid over the odds for it but it was the only way to get it before the BTL brigade nabbed it, every other flat in the district is BTL.

I only got it because I was renting the flat opposite and the woman who owned it mentioned she was putting it up for sale so was straight down the estate agents and made an offer on it the same day and was accepted. I felt if I haggled a BTL'er would have snapped it up from under my nose.

I don't mind too much about the value, the mortgage is currently a 1/4 of what the valuation said the rent would be so I'm happy about that at least. :beer:

I find BTL ghettos a little depressing. Nobody really cares for the place when they only have 6 months security.

neverdespairgirl

OffGridLiving wrote: »

I've got a repayment mortgage, so I'm not really that knowledgeable about IO mortgage availability, I have just seen press reports saying that they are harder to acquire. I dare say that if smallchanged is really interested in an investment property he can approach a mortgage broker for advice.

We wanted IO, as we are both self-employed, so prefer to have a lower must-make payment, and overpay when one of us gets a big payment in. Suits us better than repayment. My parents usually (I think always, but I'm not that sure) had IO mortgages when they could, as their income also fluctuated hugely.

Cornucopia wrote: »

IO is still alive and well for BTL. But almost impossible to get for residential.

I don't think it is impossible - we just had to sign a couple of bits of paper saying we understood that we'd still have to pay the bank back the capital at some stage.