Times up, Zero interest mortgage.

Minstadave said:
That's my point - she's essentially rented the house cheaply and also gained the amount the property has gone up in value. Both scenarios leave you without a property at the end, I hadn't missed that.
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Apologies, I hadn't read the article. Maybe in this case but not necessarily if you bought now.

So she borrowed £182k but could theoretically get £550k. She pays the original amount back and has £368k left. Yes, that will buy her a nice house in lots of areas in the country. However, she can't get one where she lives now which she's moaning about.

I believe it is difficult to get an IO mortgage today.
 
Also if she didn't have the interest only loan the repayments would have been much higher. Where has all the money gone from not making these payments? Most likely she was living beyond her means in the first place. No sympathy can be had for the short sightedness in this case, especially with all that equity that has built up.
 
Stumble Bum said:
Also if she didn't have the interest only loan the repayments would have been much higher. Where has all the money gone from not making these payments? Most likely she was living beyond her means in the first place. No sympathy can be had for the short sightedness in this case, especially with all that equity that has built up.
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She was living with beyond her means, she said she had no other choice but to go the IO route.

I'm not really sure what's she's moaning about, looks like she's done pretty well out of the whole thing, yes she's got to move or get a new mortgage, but that's been the case for 10 years.
 
Hmm, why didnt she just rent the place out for two/three times what she was paying? Then again she would want to live close by and all that extra rent would be eaten up anyway, so i guess it's not all roses.
 
Minstadave said:
Pay £500k to who?

Don't you just sell the house at the end, pay off the balance (the initial purchase price) and keep what's left?
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Precisely, but this idiot mother, is pretending she doesn't know that to hopefully get compensation.
She services a loan over the mortgage term without paying off the capital, so she owes the capital, and is afraid of losing 'her' house, when she hasn't owned the house or even part of the house at any time.
Its the bank's house and that's that.
 
Dipsh**s especially the "we didn't have things explained to us". Man up, take responsibility. Suppose they expect a misled into Interest Only mortgage payout now? Just the name explains it, "interest only". Thanks to idiots like that, others for whom interest only mortgages are suitable have been barred from taking them out since 2008.Think there's a few lenders now who will do IO.
Nothing at all wrong with interest only mortgages for those who already have the net worth to buy a house out right.
I reckon case of "we'll worry about it later"....Now it's later.
 
StriderX said:
So apparently one fifth of all mortgages are interest only, which is 1.9 million people seemingly and a lot of them aren't touching their debt at all...
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My eldest daughters job is ringing home owners up to tell them that in 'x' years they will still owe the money they borrowed from the bank and then they work out a plan to pay it back or sell the house when the time is up.
A typical example she showed me was somebody paying £250/month but they have now agreed to pay £1300/month over the next 5 years to pay the debt off (the figures may be exaggerated but you get the picture).
Other people sell their house and downgrade to pay the initial loan off but I believe some agree to give the house to the bank but still live in the house paying a rental.
 
I think its just silly when all the pressures are mounting for a rather unfortunate recession, a problem for the future seems to be excruciatingly popular for people who feel like their life is well enough.

When their entire wealth stems from other people not doing this sort of thing...
 
MadMossy said:
Chances of another big crash before the end of the decade. Pretty likely I reckon.
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I think so. I think house prices one day will take a massive hit too. Interest rates rises, a possible recession due to Brexit, people defaulting. It's only been helped along now by the extremely low interest rate
What I fear with the housing market is that people just expect to make money from them. It's now unthinkable that house prices could drop and stay there for a long period. That's sometimes when these things happen.
People may just change their view on property too. Lets face it, some really rubbish properties go for stupid money and I can only think it's due to people desperation to get on the property ladder. Will one day people look at a property and simply not wish to buy them at these stupid prices?

There used to be a lot of FTSE bears. They seem to have disappeared now. That may be a sign to start worrying too.
 
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Minstadave said:
£70,000 over 10 years in just interest. However that's under £600 a month for a £550,000 property, probably cheaper than renting, plus you're also up however much the value of the property has gone up.

Am I being stupid or does it not actually sound that awful a deal?
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they bought the house for £180K so interest is charged on that not the price it is now.

it's a stupid article they have made over £370k in profit on the value. they could quite easily sell the house and move elsewhere. effectively her son still has £370K inheritance as they only owe the bank £180K yet house is worth over £550K.

they are idiots to even be complaining
 
They need to sell up and then accept they need to move away from their current location.

Aww, diddums.;)
 
Psycho Sonny said:
they bought the house for £180K so interest is charged on that not the price it is now.

it's a stupid article they have made over £370k in profit on the value. they could quite easily sell the house and move elsewhere. effectively her son still has £370K inheritance as they only owe the bank £180K yet house is worth over £550K.

they are idiots to even be complaining
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It's not stupid if you want to live in London, that £370K will get you a cardboard box for all it's worth.
 
StriderX said:
It's not stupid if you want to live in London, that £370K will get you a cardboard box for all it's worth.
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£410K will get you a large brand new build 5 bedroom house in an affluent area in Glasgow.

boohoo, they would need to take out a mortgage of £40K to do so.

absolutely stupid article with stupid people in it. they could have you know taken out a normal mortgage but now they want to milk it
 
Psycho Sonny said:
£410K will get you a large brand new build 5 bedroom house in an affluent area in Glasgow.

boohoo, they would need to take out a mortgage of £40K to do so.

absolutely stupid article with stupid people in it. they could have you know taken out a normal mortgage but now they want to milk it
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There are 1.9 million more people in a similar position (though not all of them will have been so silly to think it was anything other than a nice rental situation without all the problems), it's less about a few people being ****, and more about if something more dangeorus (Ahem Brexit, other liquidity problems, no savings etc etc) actually catches up at the same time. Which... well is occurring all at once, "strangely".
 
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