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StainlessSteelCat

Nearly A Million Have No Plan For Paying Off Io Mortgages

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Nearly a million homeowners have no way of paying off their mortgages because they opted for interest-only loans, according to Citizens Advice.

The new figure is much higher than previous estimates from lenders and from the City watchdog, the Financial Conduct Authority (FCA).

Citizens Advice said 934,000 owners did not have a plan for how to pay back the money at the end of the mortgage term.

It warned that time was running out for some to organise their finances.

http://www.bbc.co.uk/news/business-34144333

I'm sorry for for their difficulties, but have limited sympathy. Sure,they just wanted a stable roof over their heads, keep up with Joneses etc. But nearly a 1m of these will have undoubtably contributed to the ridiculously high prices we have today - particularly in the SE (I suspect). They are perfect employer fodder though as they will do absolutely nothing to rock the boat.

Edited by StainlessSteelCat

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Quickly read the article ... brighton family saying they need help because they were essentially tricked/forced into it ... should have read the paperwork love! I have been priced out of the market partly because tw*ts like you took out dangerous loans and inflated prices ... you think my taxes are now going to bale you out? Go f@ck yourself!

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Quickly read the article ... brighton family saying they need help because they were essentially tricked/forced into it ... should have read the paperwork love! I have been priced out of the market partly because tw*ts like you took out dangerous loans and inflated prices ... you think my taxes are now going to bale you out? Go f@ck yourself!

I know the HPC softhearts will be here later, saying media tricked them into it. Or if they lay off on this thread, they'll be soon back to another. They really seem to believe everyone owes the owner side a bailout. Any excuses and it's OOs didn't know what they were doing. Pay £500,000 for a studio apartment, and it's media to blame.. "begin the QE". Interest Only mortgages from way back where owners home worth x3 they paid for it... "lobby for bailouts"

Brighton's in a mega BUBBLE anyway. Just seen a speculator sell up for a fortune (his second property) which he held onto whilst buying another home in 2010, grrr - some £650K when he was complaining about not being able to sell it for £500,000 in 2008.

And the house I guessed Realist Bear bought in 2011, has just gone Sold STC just outside Brighton. If it is him, the old dinosaur might be STR-ing.

I just received a call from my solicitor that our house purchase has completed. Peaked at £289k or so and we got in for £220k. Why? Tired of waitng. No too bad adeal. We lucked out a bit as the sale was a estate deal and the vendors had no idea of local market conditions and probably undersold by a bit as bungalows that are nice around my way go quickly if under £250k.* We made the offer to buy (£5k under asking and didn't want to go lower as I saw the next lot of wannabe buyers arrive when we were still looking and these wre no shills) within 2 hours of it hitting RM and there were 3 more offers that day but the Vendors went with us because we had owt to sell.

Anyway..................I am still in th bear camp and stick to my Crimbocast (the new HPC.co.uk challenge at Christmas every year when the brave put their heads on the block and guessimate where the year ahead will go.

*Anything over £250k is DIW. Large stuff is dropping heavily.

Sale Date: 24 Jun 2011. Sold Price: £220,000

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=48131869&sale=222175&country=england

Sold STC £339,950 http://www.rightmove.co.uk/property-for-sale/property-48131869.html

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So sell up Brighton IO 'victim' - or get the HPC softhearts to donate money directly to you.

Renter-savers owe you nothing at BUBBLE HIGH valuations.

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I know I am going to get hate post on here for saying it.

But I think it is stupid that people live like paupers and die filthy rich. I personally would like to live like a king and die with nothing.

Don't worry I am paying off my mortgage, it will be all paid for when I reach 65 I'm a good little slave really.

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I know I am going to get hate post on here for saying it.

But I think it is stupid that people live like paupers and die filthy rich. I personally would like to live like a king and die with nothing.

Don't worry I am paying off my mortgage, it will be all paid for when I reach 65 I'm a good little slave really.

Probably close to the mindset of those who've been outbidding many of us on HPC for so many years (not you as a long-time owner).

Forget about tomorrow live for today. Live life..... die skint, after a fulfilling purely self-orientated life, and still owing £500,000 on IO mortgage. Leave nothing for spouse/young children, if dying early either.

Yeah. Celebrate. It's all about I. \o/

Die with nothing. IO mortgages who cares... outbid someone else who is concerned with managing down mortgage debt, by fortunes.

Edited by Venger

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Ah yes this is the bit where all the slaves round on the slave that dares to think differently. Much to the amusement of the slave masters.

Did I mention I don't have any kids? I some how forgot to have any in my journey through life.

Not sure what I should do with my house as I come to the end off my days. One thought was to have it filled with ready mix concrete as a monument of having been here.

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Slaves round on the slave that dares to think differently. Much to the amusement of the slave masters.

What is that supposed to mean? Sounds like jargon to put us off criticising those who are moaning despite HPI galore, who took on huge IO mortgages to outbid others. With fancy idea bank/authorities sat in background laughing.

So you can afford to take the risks you want to.

All I'm pointing out is it doesn't really apply to many of us in the market who want to take a more balanced perspective than spend-it-all approach. And those who have stretched to buy on IO in past years (outbidding others), now complaining (despite Brighton being a pure HPI++++ fest where they could sell), made their own decisions.

Why don't you follow your own advice. Go out on the lash, and spend it up having fun.

Edited by Venger

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I know I am going to get hate post on here for saying it.

But I think it is stupid that people live like paupers and die filthy rich. I personally would like to live like a king and die with nothing.

Don't worry I am paying off my mortgage, it will be all paid for when I reach 65 I'm a good little slave really.

I have a lot of sympathy with your view - especially as I'm also childless. I'm not sure going IO is quite the same as I'd rather not be slave to a bank or employer during the best years of my life either. Being mortgage free is about not having to work for the man any longer than necessary as far as I'm concerned.

But yes, I intend to die leaving as little as possible.

Edited by StainlessSteelCat

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The only btl io plan to repay is remortgage existing property / sell to repay isn't it?

According to the article there are are about 2.5 million IO mortgages in total in the UK, so are we really supposed to believe that there are 1.6 million people out there with IO mortgages who are diligently saving monthly amounts equal to what the principal repayment would have been?

I think it's much more likely that 99.9% of IO mortgage debtors are saving nothing and are just planning to remortgage or sell at the end of the mortgage term.

Edited by Dorkins

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FFS

If I had a pound for every time I have wasted my precious time worrying about the future, I would have paid off several mortgages in Brighton or some other "hot spot".

In this day and age, with the loss of a life long trade (let alone a job for life) can anyone really predict their future further more than a year ahead??...I think not.

Read through the headlines in the papers or watch a few documentaries, DYOR; the world is changing around us and its happening quickly.

People get hurt that way.

The migrants (EU and US), Ukraine, Saudi vs Iran in Yeman, the Koreas, BRICS vs the Anglo American banking empire; there is a lot more to worry about than a bunch of "Little Englanders" making their financial plans over the next decade or two.

Life and happiness are not guaranteed, live and enjoy it all whilst you can.

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So they are just renting

Exactly. Explained that way, it suddenly doesn't seem like such a horror story, does it? They're no less secure and no worse off financially than the millions forced to rent because people like them over paid.

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The mother-in-law bought her council house for £40k in the 90's. She just sold it for £155k and repaid the £40k debt that she had never paid off.

She has now bought a 1 bed house with the £115k profit.

It can work out if prices are rising.

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In some cases they have converted interest-only mortgages into Lifetime Mortgages, which allow borrowers to stay in their homes though retirement, paying interest if they can. The debt is paid off when they die or have to move out.

I'll have one of those please

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So they are just renting

Renting with a fixed contract end date. The issue is they want more time.

Anyone who says they didn't realise they were on interest only is a bit of a tool. You get yearly statements it isn't difficult to see that the balance isn't going down and you've had 25 years + to notice...

I should add that most do have a way of paying off most if not all of the mortgage - they can sell the house...

Edited by Squeeky

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The old chap i going help with his pc. He was telling me his cleaner/home help as interest only mortage on semi , never has any money and is talking about upgrading to bigger/better house

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Any chance of miss selling is zero. As already mentioned on here numerous times - since the early 2000's every mortgage has had to provide a key facts indicator prior to agreement. This clearly states in childlike terms the ins and outs of it. Anyone saying 'They were conned and didnt understand' needs punched in the face.

Ok maybe thats a little harsh in terms of violence - but you get my point.

The fawning on the BBC was disgusting this morning. "oh they fear they may lose their home" - Its not their ******ing home !!

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In some cases they have converted interest-only mortgages into Lifetime Mortgages, which allow borrowers to stay in their homes though retirement, paying interest if they can. The debt is paid off when they die or have to move out.

I'll have one of those please

"Paying interest, if they can. A pretty sweet deal, if you ask me.

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The mother-in-law bought her council house for £40k in the 90's. She just sold it for £155k and repaid the £40k debt that she had never paid off.

She has now bought a 1 bed house with the £115k profit.

It can work out if prices are rising.

So go buy a house at these bubble prices with an IO mortgage.

What's that? There's very few of them available for OOs, and those that do exist are tightly restricted.

A hpcer has been keeping me informed of the key year big volumes of IO mortgage finish their terms. I've not being waiting and positioning to buy a house, for another Breakdown-for-Victims party bailout.

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Well I think the best goal is to get mortgage free while still young (work London then move somewhere affordable). Go part time at 30 and enjoy the rest of your life. House isn't perfect but there's more to life. I've been on holiday 9 times this year so far.

Works a lot more relaxed now I know I don't need need the money and have enough to live of for several years in the bank and no debts.

Maybe I'll get some inheritance at 50 in 20 years time. Else I'll probably start spending my house.

That plan sounds great if you start earning big bucks very early, and manage to save a hell of a lot of it.

You do realise not everyone in London earns 146k by the age of 19 :D

I do like the jist of your plan though. Although for most it would probably be between 40-50 that this happens.

I am 38 and could buy for cash in a few years. However I like the buffer that cash gives me. Decisions. ALso - the places I could buy in a place like Edinburgh for my money - are not the greatest.

I could of course move into the middle of nowhere - but dont really fancy that either.

I will just keep on faffing and getting very very drunk every weekend and going on lots of holidays. B)

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Is this just oo with io mortgages or are btl io included too?

The only btl io plan to repay is remortgage existing property / sell to repay isn't it?

I suspect it's just owner occupiers - aren't there something like 2 million buy-to-let loans in the UK, circa 80% of which are interest only and have, as you say, no repayment plan? - and given it's self-reported most of the ones who do have plans to repay probably don't have adequate plans to repay.

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