Nearly one million face mortgage difficulty.

gadgetmind

wotsthat wrote: »

If I had an IO mortgage and was sent a letter asking how I planned to repay it I'd ignore it too.

As I told them at the time of taking out the mortgage that I intended to repay via "sale of mortgaged property" then I can't see why I should tell them again. The fact that this wasn't exactly the truth is quite by and by.

lisyloo

then I can't see why I should tell them again

They told me they were legally obliged.
Whether that's strictly true of whether that's their interpretation I'm not sure.
I can understand they are being dilligent, but from my point of view it's none of their business. If they had questions they should have asked them up front before agreeing to the contract.

Crashy_Time

lisyloo wrote: »

They told me they were legally obliged.
Whether that's strictly true of whether that's their interpretation I'm not sure.
I can understand they are being dilligent, but from my point of view it's none of their business. If they had questions they should have asked them up front before agreeing to the contract.

Have you read the contract in fine detail though? They may have ways to wriggle around and put pressure on mortgage debtors, especially I.O`s? At least when you are renting if the landlord brings pressure to bear you can jump to another landlord, not so easy when the banks have legal and financial hold over you?

michaels

Crashy_Time wrote: »

Have you read the contract in fine detail though? They may have ways to wriggle around and put pressure on mortgage debtors, especially I.O`s? At least when you are renting if the landlord brings pressure to bear you can jump to another landlord, not so easy when the banks have legal and financial hold over you?

I'd just pay mine off if they did that - be a shame really as currently it makes a nice profit as I receive more interest on the balance than I pay in interest for the mortgage but if needs must....

Crashy_Time

michaels wrote: »

I'd just pay mine off if they did that - be a shame really as currently it makes a nice profit as I receive more interest on the balance than I pay in interest for the mortgage but if needs must....

Wow, I have just seen how the 118 guys can put their minds at rest, think I`ll e-mail them now.....:rotfl::rotfl:

Crashy_Time

michaels wrote: »

I'd just pay mine off if they did that - be a shame really as currently it makes a nice profit as I receive more interest on the balance than I pay in interest for the mortgage but if needs must....

Seriously, do you think the average I.O mortgage debtor, especially in London, can do what you can? Also remember, other market participants can affect the return on your investment!

lisyloo

They may have ways to wriggle around and put pressure on mortgage debtors, especially I.O`s?

I know they can call it in if they like.
They'd need very strong reasons to do that though considering the bad press they'd likely get. I don't think they are in the habit of doing that just because someones a bit arsey on the phone.

They don't have a hold over me, because I have the money to pay the mortgage off which is probably why I feel able to ask WHY I have to jump through their hoops.

Also remember, other market participants can affect the return on your investment!

Thanks for the tips, but I think those of us who are stoozing ultra low mortagages and getting paid by the banks are pretty savvy.

Crashy_Time

lisyloo wrote: »

I know they can call it in if they like.
They'd need very strong reasons to do that though considering the bad press they'd likely get. I don't think they are in the habit of doing that just because someones a bit arsey on the phone.

They don't have a hold over me, because I have the money to pay the mortgage off which is probably why I feel able to ask WHY I have to jump through their hoops.



Thanks for the tips, but I think those of us who are stoozing ultra low mortagages and getting paid by the banks are pretty savvy.

All of you? I seriously doubt that somehow....

wotsthat

Crashy_Time wrote: »

All of you? I seriously doubt that somehow....

I'm the same - I make a better return on my mortgage debt than the interest I pay on it. It'll be a sad day when this ends but I'll just pay it off.

So that's 3 out of the '12' so far.

gadgetmind

I'd definitely just pay off the mortgage if the bank got awkward. We only took out the mortgage so we could loan it to daughter for her to buy a house without us having to dispose of any other assets that would have CGT implications.

I'm sure there a significant numbers on IO without this luxury, but many have gone into it with eyes wide open.