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ReJoyce

24% Of Remortgagoing Is Io!

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Just saw this article:

http://www.dailymail.co.uk/money/article-1311612/First-time-buyers-squeezed-market-banks-tighten-belts--again.html

"The CML said the number of interest-only mortgages which were taken out remained low during July at just 8 per cent among first-time buyers, compared with 29 per cent in July 2007.

Existing homeowners were slightly more likely to opt for an interest-only loan at 22 per cent among home movers and 24 per cent among those remortgaging."

Incredible, at the peak almost one third of FTB's were buying IO.

... and still the prices stay relatively bouyant - it beggars belief.

cheers

J

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Just saw this article:

http://www.dailymail.co.uk/money/article-1311612/First-time-buyers-squeezed-market-banks-tighten-belts--again.html

"The CML said the number of interest-only mortgages which were taken out remained low during July at just 8 per cent among first-time buyers, compared with 29 per cent in July 2007.

Existing homeowners were slightly more likely to opt for an interest-only loan at 22 per cent among home movers and 24 per cent among those remortgaging."

Incredible, at the peak almost one third of FTB's were buying IO.

... and still the prices stay relatively bouyant - it beggars belief.

cheers

J

Just a few months ago we were reading that 42% of all residential mortgages are IO ! That was a figure which surprised many. If the FSA scrap them as being discussed, there will be no remortgaging IO and it will cause some change to the mirage of 'affordability'.

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sounds like BTL, most BTLs are I/O for a number of reasons (tax being one of them). You would remortgage to I/O if you are going to BTL your current place and buy a new place...

Edited by AteMoose

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sounds like BTL, most BTLs are I/O for a number of reasons (tax being one of them).  You would remortgage to I/O if you are going to BTL your current place and buy a new place...

Moose, is this because you get tax relief on the interest only part? Do BTL'ers withdraw equity gained each year to use CGT allowance or something?

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  • 201 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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