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

wotsthat

shortchanged wrote: »

Cheers Hamish, I'll keep a handy £300K for then. Because if that trough is anything like the year 99-00, I'll be minted if I buy a property when you say the trough will be and sell it off after 5 or 6 years.

Why worry? Graham says there will be a scheme to help you stay in your house anyway.

It amazes me that some people advise against buying at current prices when the same people reckon the government will help buy a house, implement policy to ensure they rise in value, and, if it does by chance go t*ts up, they'll help you stay in the house anyway.

HAMISH_MCTAVISH

shortchanged wrote: »

if that trough is anything like the year 99-00, I'll be minted if I buy a property when you say the trough will be and sell it off after 5 or 6 years.

You could do that today.

This trough is like the late 90's one as well.:)

OffGridLiving

shortchanged wrote: »

I am sick of people whinging when they can't afford to pay off their mortgage at the end of the mortgage term.

I have to be honest and say that I've never heard a single complaint and apart from an article copied from the Daily Mail a few weeks back, I've never seen a single complaint from people who can't afford to pay off their mortgages.

I've seen plenty of complaints from people moaning that their endowments had shortfalls about 10 years back, but most then took on other vehicles or part repayment mortgages to fill the shortfall. Perhaps some of these people have reached the end of their terms but still haven't managed to make up the shortfall? Though as these people did take out vehicles but were let down by their investment companies, perhaps they don't fall into the category of people who make you sick?

If it's making you feel physically ill, then perhaps you'd be better off not reading the alarmist sort of stories from the newspapers that brought us "SARS - Millions Will Die in Pandemic!!"?

Hopefully, I've set your mind (and stomach) at ease. Just try to apply some common sense to these things and you'll feel fine.

The reality of the situation is that most lenders are fine to extend mortgage terms into retirement, provided you can show them pension projections. If people only have their state pensions and have a shortfall, then I'm afraid they will have to sell up and move to a cheaper house where they either buy it outright or they have a mortgage that their pension can cover.

There is no drama here, except the sort that the Alarmist Newspapers whip up that the gullible fall for.

I hope I've set your mind (and stomach) at ease. In future, just apply some common sense to these disturbing news items and you won't be made ill.

GhIFA

The reality is that most IO mortgage holders have plans in place to repay the capital, and the majority expect these to reach the targets required.

shortchanged_2

OffGridLiving wrote: »

I have to be honest and say that I've never heard a single complaint and apart from an article copied from the Daily Mail a few weeks back, I've never seen a single complaint from people who can't afford to pay off their mortgages.

I've seen plenty of complaints from people moaning that their endowments had shortfalls about 10 years back, but most then took on other vehicles or part repayment mortgages to fill the shortfall. Perhaps some of these people have reached the end of their terms but still haven't managed to make up the shortfall? Though as these people did take out vehicles but were let down by their investment companies, perhaps they don't fall into the category of people who make you sick?

If it's making you feel physically ill, then perhaps you'd be better off not reading the alarmist sort of stories from the newspapers that brought us "SARS - Millions Will Die in Pandemic!!"?

Hopefully, I've set your mind (and stomach) at ease. Just try to apply some common sense to these things and you'll feel fine.

The reality of the situation is that most lenders are fine to extend mortgage terms into retirement, provided you can show them pension projections. If people only have their state pensions and have a shortfall, then I'm afraid they will have to sell up and move to a cheaper house where they either buy it outright or they have a mortgage that their pension can cover.

There is no drama here, except the sort that the Alarmist Newspapers whip up that the gullible fall for.

I hope I've set your mind (and stomach) at ease. In future, just apply some common sense to these disturbing news items and you won't be made ill.

Do you really believe I am a Daily Mail reader!!!

I am a staunch Express reader because you can't beat a good house ramping front page story to get you going in the morning.

shortchanged_2

HAMISH_MCTAVISH wrote: »

You could do that today.

This trough is like the late 90's one as well.:)

OK Hamish. Will you guarantee my investment for me?

Should I buy, give a lick of magnolia and then sell or should I get into BTL?

quantic

I know someone who bought 7 years ago interest only with a 10% deposit and they are still in negative equity now. That said, it still beats renting in many situations.

OffGridLiving

quantic wrote: »

I know someone who bought 7 years ago interest only with a 10% deposit and they are still in negative equity now. That said, it still beats renting in many situations.

Do you know if they will still be in negative equity in 18 years when their mortgage term ends (assuming they have a standard 25 year term)?

OffGridLiving

shortchanged wrote: »

Do you really believe I am a Daily Mail reader!!!

I am a staunch Express reader because you can't beat a good house ramping front page story to get you going in the morning.

See! You sound more cheery already!

While it's lovely that you care so much about the finances of others, if it's beginning to affect your health, then it's time to concentrate on yourself.

As far as I know, there isn't anyone on this board who has an interest only mortgage that will not be repaid by the end of the term, so there is no need to worry and no need to post on this subject any more. Things have a habit of working themselves out, so please cheer up and stop worrying. Life's way to short for all that.

shortchanged_2

OffGridLiving wrote: »

Do you know if they will still be in negative equity in 18 years when their mortgage term ends (assuming they have a standard 25 year term)?

Probably not. They surely will have at least £10K equity by then.