Interest Only Mortgages advice needed

bery_451

No one is buying houses with cash, they are buying houses with debt mortgages these days as explained in my previous posts.

If mortgages are so hard to get where there is such a strict criteria for them with the bank manager taking days sifting through your life history to check before stamping that approval stamp then explain why house prices are still going up that is fuelled by more more home sales. How did these home sales occur, is it through buyers buying homes with cash these days  ?

In any market, market prices go up or are stable if the demand is higher than supply. Meaning more home sales = higher market prices. Its simple economics lesson 101. If mortgages are so hard to get these days as the replies I'm getting on this thread suggesting this ideology then how are these increase homes sales occurring then. I don't think think these home sales are being done with full cash buyouts lol.

As I mentioned earlier as long the borrower has the deposit banks will give a mortgage out. Credit reference agencies databases and systems are flawed still use the old legacy slow systems for customer credit ratings & reports, its basically messed up. The algorithms that provide a credit score or rating is messed up too lol. For example you will read stories of a unemployed person who has a monthly mobile contract has a higher credit score than a employed person who's got lets say a lot of bills to pay. The old legacy credit check systems that we used for decades is flawed and seriously needs updating.

As long borrower has deposit and computer mortgage application says yes with the help of these excellent credit rating agencies lol that gives decision on screen in seconds the borrower can get a mortgage approved. 


 

MWT

bery_451 said:

As long borrower has deposit and computer mortgage application says yes with the help of these excellent credit rating agencies lol that gives decision on screen in seconds the borrower can get a mortgage approved. 

You really don't understand how even the credit vetting for a mortgage works, do you?

I'm done with feeding this particular thread at this point it is going nowhere and certainly isn't helping anyone save money...

Thrugelmir

bery_451 said:

csgohan4 said:

So OP can't get a I/O mortgage and is complaining about only the more 'well off' people getting them. Without reference to risk appetite of lenders and defaulting probability

Common sense wise, you will likely get your money back with someone who is has a higher income, than someone who is scraping by and may be more at risk of repo. 

Why do you think interests rates are lower for those who have put more deposit in or paid off significant amount of capital in their house? 

It's like a motorist who has had 3 fault crashes against someone with none, who do you think has a higher premium? It's about risk stratification and not just about perceived rich people get all the benefits argument.

These 'rich' people also worked hard for their money and made it go further and made sacrifices as well. Rather than that expensive holiday or car, they paid off more of their mortgage or saved more into their emergency fund. 

Have you looked into the self declaration/Sub prime mortgages and why they were one of the reasons for the 2008 crash?

Some People cannot simply be trusted in their financial affairs when lenders are involved as well. Hence the introduction of stricter regulation and criteria for lending. Rightly so imo.  Crazy that people used to be able borrow 125% of their value of the house they bought. 

They certainly got Rekt, when it came to paying the lender back and couldn't afford to. crying wolf and mis sold in the process. 

 You can get that deposit from credit cards & personal loans!

You can try.  But most likely will fail. The world has moved on in the past decade. A very different place for retail consumer credit in general. 

big_saver_5

I think the op has done a Marty Mcfly and gone back to 2006 in his delorean
100% interest only mortgages and self certs disappeared 15 years ago. Now expect 3 months payslips, 3 months bank statements, 3 years accounts for the self employed along with 3 months business bank statements for the self employed and 6 months proof of deposit for the solicitors. 

getmore4less

big_saver_5 said:

I think the op has done a Marty Mcfly and gone back to 2006 in his delorean
100% interest only mortgages and self certs disappeared 15 years ago. Now expect 3 months payslips, 3 months bank statements, 3 years accounts for the self employed along with 3 months business bank statements for the self employed and 6 months proof of deposit for the solicitors. 

big_saver_5 said:

Problem with the 'sell the house at the end' is people get to the age their interest only mortgage is ending and decide they dont want to sell. 

Just snuck  this one in 2006 and now they don't want to sell(not clear what the plan was)

 https://forums.moneysavingexpert.com/discussion/6250787/mortgage-prisoners-too-old-insufficient-income-ahhhhhhh

bery_451

MWT said:

bery_451 said:

As long borrower has deposit and computer mortgage application says yes with the help of these excellent credit rating agencies lol that gives decision on screen in seconds the borrower can get a mortgage approved. 

You really don't understand how even the credit vetting for a mortgage works, do you?

I'm done with feeding this particular thread at this point it is going nowhere and certainly isn't helping anyone save money...

You don't understand the housing market supply and demand. House prices are not falling suggesting there's still a demand and lots of home sales to keep house prices high otherwise they would have tanked.

If mortgages are so strict to get, that you have been implied, and all those home sales are done on mortgages/debt not on full cash buyouts lol then hmmm how all these home buyers getting mortgages approved if its so strict and hard to get a mortgage  ? 

Put it simply if mortgages are tough to get and the lending criteria has gotten more strict then this alone would have disrupt the housing market causing home prices to fall but they are not falling are they  ?

bery_451

Thrugelmir said:

bery_451 said:

csgohan4 said:

So OP can't get a I/O mortgage and is complaining about only the more 'well off' people getting them. Without reference to risk appetite of lenders and defaulting probability

Common sense wise, you will likely get your money back with someone who is has a higher income, than someone who is scraping by and may be more at risk of repo. 

Why do you think interests rates are lower for those who have put more deposit in or paid off significant amount of capital in their house? 

It's like a motorist who has had 3 fault crashes against someone with none, who do you think has a higher premium? It's about risk stratification and not just about perceived rich people get all the benefits argument.

These 'rich' people also worked hard for their money and made it go further and made sacrifices as well. Rather than that expensive holiday or car, they paid off more of their mortgage or saved more into their emergency fund. 

Have you looked into the self declaration/Sub prime mortgages and why they were one of the reasons for the 2008 crash?

Some People cannot simply be trusted in their financial affairs when lenders are involved as well. Hence the introduction of stricter regulation and criteria for lending. Rightly so imo.  Crazy that people used to be able borrow 125% of their value of the house they bought. 

They certainly got Rekt, when it came to paying the lender back and couldn't afford to. crying wolf and mis sold in the process. 

 You can get that deposit from credit cards & personal loans!

You can try.  But most likely will fail. The world has moved on in the past decade. A very different place for retail consumer credit in general. 

That's why consumer & national debt is still at its all time highest, much more higher than 2006-2009 debt levels, even with the conservatives Tories and their 10 years of austerity spending cuts from 2010 manage to get us much more higher in debt

Time to connect yourself back to reality now?

bery_451

big_saver_5 said:

I think the op has done a Marty Mcfly and gone back to 2006 in his delorean
100% interest only mortgages and self certs disappeared 15 years ago. Now expect 3 months payslips, 3 months bank statements, 3 years accounts for the self employed along with 3 months business bank statements for the self employed and 6 months proof of deposit for the solicitors. 

The 6 months proof of deposit is to show the solicitors that the deposit money has not came from lets say selling Class A drugs? Drugs dealers nowadays not making enough money so they need to borrow  ?

big_saver_5

Most people can prove their income - payslips, tax assessments, tax year overviews
if you can't then you cannot get a mortgage
The deposit will also be picked up if it has come from a loan, a non family relative etc. Solicitors aren't stupid and if a lump sum has appeared in your account within the last 6 months then expect to provide evidence of where it came from.

big_saver_5

bery_451 said:

big_saver_5 said:

I think the op has done a Marty Mcfly and gone back to 2006 in his delorean
100% interest only mortgages and self certs disappeared 15 years ago. Now expect 3 months payslips, 3 months bank statements, 3 years accounts for the self employed along with 3 months business bank statements for the self employed and 6 months proof of deposit for the solicitors. 

The 6 months proof of deposit is to show the solicitors that the deposit money has not came from lets say selling Class A drugs? Drugs dealers nowadays not making enough money so they need to borrow  ?

if a drug dealer wants to buy a house for cash they will need to prove where the cash has come from. If a 30 year old has enough money to buy a house outright for cash then they will get asked a lot of questions especially if they cannot prove it has come from income.