Nearly one million face mortgage difficulty.

wotsthat

Graham_Devon wrote: »

As for the 6 year time frame, that doesn;t apply to claims per se. It only applies to complaining to FOS. People are claiming PPI for loans going back further than 6 years. Specifically, loans which are still current or have been repackaged. Which would obciously apply to mortgages.

With PPI presumably the 3 year rule applied from when customer might reasonably be expected to have suspected they were mis-sold rather than the 6 year rule from purchase.

The lenders have ensured that line in the sand has already been drawn.

The time limits relate to complaining to the FOS. Within that timeframe the customer should have already exhausted the lenders complaint procedures.

Thrugelmir

silvercar wrote: »

23 years ago we bought a family home for 167k, now it would be worth about £600k. IO mortgages were available 23 yrs ago, so if we had bought on 100% IO mortgage at the time, we could now be preparing to sell up and buy outright a smaller home with the equity released by the sale.

Seems a reasonable plan to me,

With the benefit of hindsight.

wotsthat

Thrugelmir wrote: »

With the benefit of hindsight.

I think you missed the point.

Anyone with a 'ticking timebomb' mortgage that's coming to an end by luck or judgment is going to be sat on a load of equity and will have no mortgage difficulty whatsoever.

You don't need hindsight to see that although on the downside they might have mewed all the equity out years ago and/ or there might be a big crash.

chucknorris

wotsthat wrote: »

I think you missed the point.

Anyone with a 'ticking timebomb' mortgage that's coming to an end by luck or judgment is going to be sat on a load of equity and will have no mortgage difficulty whatsoever.

You don't need hindsight to see that although on the downside they might have mewed all the equity out years ago and/ or there might be a big crash.

But how does this compare to Crashy's foresight mastermind plan of just renting a bedsit in Edinburgh for 20 odd years, and saving up in a low interest savings account?

Thrugelmir

wotsthat wrote: »

I think you missed the point.

I sold my family home in 2005 for £335k. Looking the other day the most any property has realised in the development since is £365k.
(The development consists of 18 - 4 bed detached houses of the same floor area in different room layouts in a lovely rural location).

Hence my hindsight comment. My point was factual so hit the target. There's an element of good fortune in life.

Graham_Devon

wotsthat wrote: »

I think you missed the point.

Anyone with a 'ticking timebomb' mortgage that's coming to an end by luck or judgment is going to be sat on a load of equity and will have no mortgage difficulty whatsoever.

You don't need hindsight to see that although on the downside they might have mewed all the equity out years ago and/ or there might be a big crash.

Hasn't your argument been before now that house have not increased as much as people make out?

All in aid of suggesting the younger today don't have issues as great as they say they do compared to when you bought.

Now you use HPI to suggest they will be fine, rather suggesting that HPI has been quite great.

Your point quite ignores the fact that if anyone actually reaches the end of a 25 year loan and can't afford the repayment they will likely find it difficult to get another mortgage simply due to age - And the obvious fact that they cannot afford to buy pay off the house they bought at prices 25 years ago.

Personally I feel you may need to step back from the rose tints. No one is suggesting they will have nothing. But that's quite different to suggesting they can simply sell up, take their HPI and live happily ever after, as you seem to be suggesting. if they could do that, they would simply pay off the mortgage and be done with it.

Thrugelmir

Graham_Devon wrote: »

Hasn't your argument been before now that house have not increased as much as people make out?

Wide variation depending on where you live. London prices have been inflated by money from Asia. If these speculators bail out then a correction may follow.

wotsthat

Graham_Devon wrote: »

Hasn't your argument been before now that house have not increased as much as people make out?

All in aid of suggesting the younger today don't have issues as great as they say they do compared to when you bought.

Depends what they make out I suppose.

Graham_Devon wrote: »

Now you use HPI to suggest they will be fine, rather suggesting that HPI has been quite great.

If they borrowed £100k and HPI was 0% they'd still be fine as they'd have the collateral to repay the debt. Any more than that and and they clear the debt and walk away with cash.

Graham_Devon wrote: »

Your point quite ignores the fact that if anyone actually reaches the end of a 25 year loan and can't afford the repayment they will likely find it difficult to get another mortgage simply due to age - And the obvious fact that they cannot afford to buy pay off the house they bought at prices 25 years ago.

They sell up, repay the debt and rent then.

Why are people on IO special cases? If someone rents for 25 years we don't worry about their equity, their age or whether they can afford to buy a house - they keep renting.

Graham_Devon wrote: »

Personally I feel you may need to step back from the rose tints. No one is suggesting they will have nothing. But that's quite different to suggesting they can simply sell up, take their HPI and live happily ever after, as you seem to be suggesting. if they could do that, they would simply pay off the mortgage and be done with it.

My rosy tints are much more rosier than a suggestion they will simply pay off the mortgage, pocket a few years rent and move on - I reckon that's a worse case.

I fear this thread is looking for solutions to a problem that doesn't exist.

wotsthat

Thrugelmir wrote: »

I sold my family home in 2005 for £335k. Looking the other day the most any property has realised in the development since is £365k.
(The development consists of 18 - 4 bed detached houses of the same floor area in different room layouts in a lovely rural location).

Hence my hindsight comment. My point was factual so hit the target. There's an element of good fortune in life.

Yes, I'd be heartbroken if I only paid the interest on a lovely house for 10 years and walked away with only £30k tax free. The horror.

wotsthat

chucknorris wrote: »

But how does this compare to Crashy's foresight mastermind plan of just renting a bedsit in Edinburgh for 20 odd years, and saving up in a low interest savings account?

He should have bought Thrugs old house in 2005 - £30k would cover Crashy's rent for about 8 years.