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Blue Nose Bear

25% Io Mortgage

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A 25% IO mortgage? WTF !!!!!!!!!!!

Surely there must be a case for misselling going on here... it should be illegal.

Insanely leveraged gambling at the top of the market. This would only be a vaguely good idea if house prices continued to rise at astronomical levels. AND THEY ARE STILL AT IT. No need for a liar loan, just a perfectly legal pile of S&&&t.

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where is the ownership in this shared ownership?

basically, its a 100% mortgage and no right to sell up without permission, and only 25% of any gains, and 100% of any losses.

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Another gem from MSE Forum

http://forums.moneys...d.php?t=3079552

Why oh why would anybody think this is a good idea

£186,000

Get a 25% IO Mortgage and pay rent on the other 75% :blink:

It's interesting that his sheltering costs are £850 per month out of an income of £2,000 and still he can't cope. That's barely more than a third!

I can see the house price bloodbath coming ever closer.

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A 25% IO mortgage? WTF !!!!!!!!!!!

Surely there must be a case for misselling going on here... it should be illegal.

Insanely leveraged gambling at the top of the market. This would only be a vaguely good idea if house prices continued to rise at astronomical levels. AND THEY ARE STILL AT IT. No need for a liar loan, just a perfectly legal pile of S&&&t.

I'm as gobsmacked as you, can't believe that someone convinced him this was a good idea.

Basically he's ended up paying top rent AND being responsible for the upkeep of the property.

It's an abuse of scared and stupid people, these twunts should be brought to justice.

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It's interesting that his sheltering costs are £850 per month out of an income of £2,000 and still he can't cope. That's barely more than a third!

I can see the house price bloodbath coming ever closer.

The £850 is his interest on his IO mortgage and his rent, then he's got leccy/gas/council tax and upkeep of the property, on top.

He has been shafted big time.

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Well they can't seem to manage on £1150 per month which is bizarre.

They could cycle to work and save on petrol and fares.

You can eat well for £200 per month for 2 people easily.

what is their money going on?

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A 25% IO mortgage? WTF !!!!!!!!!!!

Surely there must be a case for misselling going on here... it should be illegal.

Insanely leveraged gambling at the top of the market. This would only be a vaguely good idea if house prices continued to rise at astronomical levels. AND THEY ARE STILL AT IT. No need for a liar loan, just a perfectly legal pile of S&&&t.

It's another laughably stupid way to uphold an overpriced market. IO - they are mad!! It simply means that people who WOULD be able to live in these homes on this basis cannot actually afford them, BECAUSE THE PRICE IS TOO HIGH DUE TO PAST STUPID LENDING AND MARKET INTERFERENCE.

The best thing the govt could do for everyone, FTB, SAVERS, THE ELDERLY, is to put IR's back to normal asap. Nip inflation in the bud and asave us even more pain later.

HIGH HOUSES PRICES = BAD FOR ECONOMY LONG TERM. LOW HOUSE PRICES = GOOD FOR ECONOMY, COMPETITIVENESS AND LONG TERM.

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The £850 is his interest on his IO mortgage and his rent, then he's got leccy/gas/council tax and upkeep of the property, on top.

He has been shafted big time.

A third in lodging cost not including expenses is considered reasonable in normal times. What's shafting him and millions of others I think is the other rising expenses that are not really optional such as taxes and heating. Housing costs will have to be reduced.

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+ 1

If you want stability, and be able to have children, pets, etc, you have to buy. Tenants' rights in Britain are a joke, despicable.

True, but shared equity doesn't offer anything like a panacea. Try not paying the rent. The rights of shared equity tenants are a joke IMO.

AVOID AT ALL COSTS. It's just another ploy for the VI's (baby boomers etc) to keep the gravy train running.

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I can calculate the motions of the heavenly bodies, but not the madness of people. The claimed view of Sir Isaac Newton on the outcome of the South Sea Bubble.

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The security of a prison, it seems. I rent and I feel perfectly secure. I don't think this couple feel secure.

We definitely can't wait 2 or 3 more years whilst living in this tiny ugly little flat, with no outside space. But we can't buy until prices are fairer. The obvious solution would be to rent a better place.

But last week we went to see a house to rent, long term, 2 or 3 years, and the agent asked if we had children or pets. We said not yet, but we are considering it, and could have them in the next few years. Agent said: "the Landlord wouldn't like that". :blink:

The fecking b@stard!

How can they be allowed to say, or do that??!! This is beyond absurd. The legislation/regulation is a joke, a bad joke.

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A third in lodging cost not including expenses is considered reasonable in normal times. What's shafting him and millions of others I think is the other rising expenses that are not really optional such as taxes and heating. Housing costs will have to be reduced.

He would need to be taking home £2,550 for it to be a third. He takes £2,000 minus £850 mortgage and rent . Council tax must be £100+ and the service charge another £100. So that is £1,050 over half, before energy , water, insurance , tv licence , phone and internet connection . They must come to minimum of £200 we are now up to £1,250 . That is before any fares to work and other work related costs like clothing for work.

Overall it leaves not a lot to live on never mind have a good lifestyle , no wonder so many people have turned to credit and are now in the brown stuff.

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He would need to be taking home £2,550 for it to be a third. He takes £2,000 minus £850 mortgage and rent . Council tax must be £100+ and the service charge another £100. So that is £1,050 over half, before energy , water, insurance , tv licence , phone and internet connection . They must come to minimum of £200 we are now up to £1,250 . That is before any fares to work and other work related costs like clothing for work.

Overall it leaves not a lot to live on never mind have a good lifestyle , no wonder so many people have turned to credit and are now in the brown stuff.

I agree, and the fact that they can't manage at that level is worth a mention IMO. Think of all those poor sods who pay more than 50% of their income on a mortgage! Credit has allowed us to ramp up housing expenses as a % of income while the non household expenses are beginning to shoot up. Something's going to crack, and it's not going to be taxes going down.

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I agree, and the fact that they can't manage at that level is worth a mention IMO. Think of all those poor sods who pay more than 50% of their income on a mortgage! Credit has allowed us to ramp up housing expenses as a % of income while the non household expenses are beginning to shoot up. Something's going to crack, and it's not going to be taxes going down.

My first motgage was just under 50% of my take home pay . But two big thingswere different then.

(1) the bills were a lot less back then Just one item water £40 per year . The stuff to go in the house was expensive but you got second hand or went without. Remember buying a £7 cut of piece of carpet to put my feet on when I got out of bed LUXURY.

(2) It was only like that for a few years wage rises were good year on year by about year 4 with interest rates dropping my mortgage was about 25% of my take home pay . Today with pay rises not keeping up with general costs mortgages are going to get a bigger burden as the years go on not smaller burdens.

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  • 315 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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