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theblacksheeple

Woolwich New I/o Policy Effective 25/10/2010

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Not going to affect that many people.

You must have a mortgage of over 25 years, and a LTV of >75% and have no repayment vehicle in place to be affected by this.

(That's the way I read it, and it is a little ambiguous, maybe the devil is in the detail. Presumably it is only for new mortgage applications, not existing ones etc.??)

Edited by twatmangle

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Not going to affect that many people.

You must have a mortgage of over 25 years, and a LTV of >75% and have no repayment vehicle in place to be affected by this.

Sounds like just about every IO applicant for the last 10 years to me. If can afford a 25% deposit on a 25 year or less mortgage than it's odds on you wouldn't need IO because repayment would be easily affordable. This excludes all those that we don't want on IO mortgages. Young FTBs who can't afford repayment.

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Sounds like just about every IO applicant for the last 10 years to me. If can afford a 25% deposit on a 25 year or less mortgage than it's odds on you wouldn't need IO because repayment would be easily affordable. This excludes all those that we don't want on IO mortgages. Young FTBs who can't afford repayment.

I don't understand I/O.

You are admitting that you can't afford the house before you've even bought it.

(OK maybe for BTL it makes some sense)

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I don't think I/O even makes sense for BTL these days.

If you can get your tenant to pay off the capital on a mortgage, BTL probably still makes sense in some parts of the country where you can get a decent yield (putting aside morality concerns). If you are relying on capital appreciation, which is the only time going I/O makes sense, then it would be a bad idea to go into BTL for the foreseeable future.

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I don't understand I/O.

You are admitting that you can't afford the house before you've even bought it.

(OK maybe for BTL it makes some sense)

I tbink the only people who would legitimately benefit from an IO mortgage are the self employed with irregular incomes so you would want the lowest minimum payment possible in months when your pay is low but also have the option to pay extra or add to the repayment vehicle in months when you receive more income.

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  • 150 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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