Will there really be a crash?

PokerPlayer111

Jack_Johnson_the_acorn wrote: »

Anything in red isn't a logical reason.

A logical reason not to get a mortgage and buy early on in life?

Jack_Johnson_the_acorn

PokerPlayer111 wrote: »

A logical reason not to get a mortgage and buy early on in life?

If you read your post again you state your strategy worked because of the things I've just highlighted.

MobileSaver

Thrugelmir wrote: »

There's a large rump of late 90's early 00's lending that's still on an interest only. ... In the next decade we will see how the historic issues unwind.

Only 20% of mortgages are interest only and only 1 in 10 of those have no repayment plan in place so we're talking an absolute worst case scenario of just 2% of mortgages not being able to be repaid at the term end.

lisyloo

and only 1 in 10 of those have no repayment plan in place

Where does that information come from?
I've had an interest only mortgage for the last 10 years which I've just paid off, but no-one ever asked me about my repayment plans so no-one KNEW.

Thrugelmir

MobileSaver wrote: »

Only 20% of mortgages are interest only and only 1 in 10 of those have no repayment plan in place so we're talking an absolute worst case scenario of just 2% of mortgages not being able to be repaid at the term end.

Where are the other 1:9 proposing to find the money from?

Running_Horse

Centrepoint flats taken off market due to silly offers.

https://www.theguardian.com/business/2018/oct/31/brutalist-market-flats-at-londons-centre-point-taken-off-market

Developers said “we see no point in chasing a market that is increasingly detached from reality”. Or could it the asking prices that are detached from reality?

lisyloo

Thrugelmir wrote: »

Where are the other 1:9 proposing to find the money from?

I don't understand what this means (if others don't either then that's why there's no reply).

lisyloo

Jack_Johnson_the_acorn wrote: »

Anything in red isn't a logical reason.

I think "having little commitements"is quite logical.
We started working in London a few years ago on a 6 month contract. Could have ended after 6 months (or any time during), so that's a good reason not to buy IMO.


If you are economically mobile then renting can be better (but IMO the pay needs to make it worthwhile - some people I know say £50K to make it worthwhile working in London but for higher payers this IS acheivable)

Malthusian

Thrugelmir wrote: »

Where are the other 1:9 proposing to find the money from?

If that was meant to say "other 90%" - Pensions, investments, selling a business, cash, selling the house - there are any number of possible repayment plans.

If you mean the 10% who don't have repayment plans, they'll sell the house.

Some interest only mortgages are on a low enough loan to value (especially after years of house price growth) that they will leave enough money to buy another house even after selling the old one and paying off the interest only mortgage. So some of those with interest only mortgages and no repayment plan will still be able to live rent free the rest of their lives.

lisyloo

If you mean the 10% who don't have repayment plans, they'll sell the house.

I never had a formal repayment plan.
I had my own plan i.e. money in the bank.
No-one in the industry asked me and no-one knew about this, so I don't think we know who's got what.