Interest only Mortgage
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    Default Interest only Mortgage

    Cant believe this has taken so long to break the news, i know lots of people and i have told them for years to pay there mortgage off. They have no money and no savings they will end up with no house but cant seem to see it happening because its in 15-20 years time

    Warning over interest-only mortgage timebomb: Borrowers face shortfalls and may even lose their homes - Business News - Business - The Independent

    Anybody in a similar boat needs to have a serious look at what may happen

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    Could never understand the logic to having these, must only be the thickest people who agreed to these mortgages.

    You also get the idiots who go and by a new sofa, they take interest free. Don't pay penny for 5 years, trouble is, you don't know if you still have a job in 5 years, then how do you pay for it.

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    Quote Originally Posted by mark8393 View Post
    Could never understand the logic to having these, must only be the thickest people who agreed to these mortgages.

    You also get the idiots who go and by a new sofa, they take interest free. Don't pay penny for 5 years, trouble is, you don't know if you still have a job in 5 years, then how do you pay for it.
    Wifes sister lost her house to have a holiday

    Woman 3 doors down lost hers so kids could have good xmas

    Remortgage house, to get a kitchen 25 years to pay a kitchen , house worth ?100,000 mortgaged for ?150,000

    Some peoples logic, you just cant fathom it.

    have now worry later


    Suppose politics is the same miliband always wants to spend more forgetting thats how the economy ****ed up in the beginning, cos people couldnt afford to pay it back

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    The scary thing is these are the clowns that blame the banks for bankrupting the Country.

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    You got me scratching my head on this one, so were did it all go wrong? Did they just pay the mortgage or did they just pay the interest and left at that and hop 0ne day they will win lottery and paid it off??
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    It's another beautiful trick dreamt up by the financial sector... Get your claws on a house and get the proles to pay THREE times for it.

    A fool and his money etc.

    What's next, paying for water?

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    If you're smart an interest only mortgage can make sense.

    You take the mortgage for a medium sized house in need of some repair. Over the next 5 years you sort it all out, thereby increasing the value of the house... all the while inflation sould be reducing the real value of the original mortgage.

    But you have to sell the house before the end of the mortgage. If timed right & done correctly a smart person could walk away with enough money to buy their next property outright.


    Sadly, it's not the smart people that that are burying their heads in the sand. A lack of forsight is going to cripple loads of people, including those caught out by the housing crash.
    Canker

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    Quote Originally Posted by Canker_Canison View Post
    If you're smart an interest only mortgage can make sense.

    You take the mortgage for a medium sized house in need of some repair. Over the next 5 years you sort it all out, thereby increasing the value of the house... all the while inflation sould be reducing the real value of the original mortgage.

    But you have to sell the house before the end of the mortgage. If timed right & done correctly a smart person could walk away with enough money to buy their next property outright.


    Sadly, it's not the smart people that that are burying their heads in the sand. A lack of forsight is going to cripple loads of people, including those caught out by the housing crash.
    If your smart you pay off more than your mortgage, interest payments tend to be higher than actual repayments in early years.

    Pay as much as you can afford now interest rates have never been so low, it knocks years off mortgage and interest rates wont stay this low forever

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    Quote Originally Posted by BigfatPaulie View Post
    It's another beautiful trick dreamt up by the financial sector... Get your claws on a house and get the proles to pay THREE times for it.

    A fool and his money etc.

    What's next, paying for water?

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    Water thats another thing

    How can it cost more than my electric?

    It also cost more than my gas

    How can this be?

    It needs breaking up for competition or ofwat need sacking

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    Quote Originally Posted by thered View Post
    If your smart you pay off more than your mortgage, interest payments tend to be higher than actual repayments in early years.

    Pay as much as you can afford now interest rates have never been so low, it knocks years off mortgage and interest rates wont stay this low forever
    That's what I have done. Was paying just over ?600 a month, and kept it at that. I could be paying around ?460 per month, so I have been overpaying ?140 per month for last couple of years

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    Quote Originally Posted by thered View Post
    Water thats another thing

    How can it cost more than my electric?

    It also cost more than my gas

    How can this be?

    It needs breaking up for competition or ofwat need sacking

    I saw an advert on Tv. If I send ?2 per month to this company..oops, I mean charity. They can give a whole village clean drinking water.

    ?2 per month for an overseas village, ?20 per month for my house..... somethings not right with my maths.. or we are ripped off.
    Canker

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    Quote Originally Posted by Canker_Canison View Post
    I saw an advert on Tv. If I send ?2 per month to this company..oops, I mean charity. They can give a whole village clean drinking water.

    ?2 per month for an overseas village, ?20 per month for my house..... somethings not right with my maths.. or we are ripped off.

    Clean drinking water for the whole village makes me laugh how stupid people pay to this charities, ok charities spends over ?200,000 for advertising on tv, radio, internet, on news papers were did they get that amount of money to spend on advertising only coned people can do it.
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    Quote Originally Posted by Canker_Canison View Post
    I saw an advert on Tv. If I send ?2 per month to this company..oops, I mean charity. They can give a whole village clean drinking water.

    ?2 per month for an overseas village, ?20 per month for my house..... somethings not right with my maths.. or we are ripped off.
    They dont get much rain either its always raining here, btw ?20 a month thats good mines almost double ?38.56

    Quote Originally Posted by mark8393 View Post
    That's what I have done. Was paying just over ?600 a month, and kept it at that. I could be paying around ?460 per month, so I have been overpaying ?140 per month for last couple of years
    Thats the way to do it mate, and for anyone in a similar boat an ?81000 mortgage with a monthly overpayment of ?140 like yourself will save on an average, with a 4.74% average interest 25 year mortgage over ?22,000 in interest alone and shave nearly 10 years off the repayment

    If interest rates rise it could be a lot more, everyone should pay whatever they can afford whether its an extra ?10 a month or ?500


    every little helps

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    It's just me & the dog at home...not that I'm there much.

    If you fit a soak away in your garden &/or collect the rain water from your downpipes, you can get your water bill reduced.
    Use that rain water to fill your toilet system & you'll save about 20p per flush.
    Canker

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    My mortgage started out as an endowment mortgage back in 1993. Sometime in 2000 my bank wrote to me and told me the endowment payments wouldn't cover the amount owed at the end and that if I gave them a further ?100 a month in another endowment that they'd see it did. I sold my endowments (never cash them in, they pay peanuts - sell them if you don't want them) changed my mortgage to repayment, paid a chunk off the mortgage and had a few good holidays in the US in 2001 with the cash from selling my endowments. As canker said there are advantages to taking out endowment mortgages, but the circumstances have to be right.
    My master plan is to live forever..... going to plan so far
    Despite the cost of living, it's still very popular.
    No good deed goes unpunished....


 

 
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