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Wayward

Interest only mortgages - space invaders(??)

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UK Finance report that defusing IO mortgages time bomb like old arcade game Space Invaders...  I would suggest it is more like Missile Command where you had to prevent the nuclear missiles hitting the cities.

http://www.bbc.co.uk/news/business-44153134

The final sentence struck me...

"In a minority of extreme cases, mortgage customers who cannot pay off the lump sum end up having to sell up or hand over the keys to their lender."...oh good there won't be a flood of distressed sellers....well we will see.

GAME OVER.  INSERT COINS.

 

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I thought Jingle Mail (handing keys back to the lender) was not an option in the UK, the lender can still chase you for any shortfall in the sale price of the house to the outstanding mortgage

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38 minutes ago, Monkey said:

I thought Jingle Mail (handing keys back to the lender) was not an option in the UK, the lender can still chase you for any shortfall in the sale price of the house to the outstanding mortgage

Yes...I think he means hand the keys back AND pay any shortfall.

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2 hours ago, Beary McBearface said:

The guy behind this 'analogy', James Tatch, was wittering on about Schrodinger's cat a year ago (link).

Reading that, I doubt there will be many - if any - io mortgages going to term.

I get the feeling weve just completed the carrot phase -post 2002 io mortgees have had arms twisted to move to rrpayment, pay down debt etc.

Id guess the rest will be dealt with by stick - aprs rising massively, bank and borrower getting forced to close loan or sell up.

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2 hours ago, Horridbloke said:

The screenshot in the article isn't even of space invaders (I think it might be galaxia or galaga).

That's the BBC for you. I expect the researcher asked to find the image is an intern that is too young to have any idea what Space Invaders is about.

When I saw the article title I thought perhaps they had done research on the impact of alien invasion on the UK mortgage market. I expect they would fine that enslavement of humanity by malevolent advanced extraterestial would be positive for lending and house prices.  Savvy aliens will get on the housing ladder before it's too late. I expect the Torys will extract taxes from the enslaved lobotomised humans to support a help to buy scheme for priced out first time planet conquerers. The BOE would be taken over by the galaxy's lowest life forms....we wouldn't see any difference. 

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35 minutes ago, Wayward said:

That's the BBC for you. I expect the researcher asked to find the image is an intern that is too young to have any idea what Space Invaders is about.

When I saw the article title I thought perhaps they had done research on the impact of alien invasion on the UK mortgage market. I expect they would fine that enslavement of humanity by malevolent advanced extraterestial would be positive for lending and house prices.  Savvy aliens will get on the housing ladder before it's too late. I expect the Torys will extract taxes from the enslaved lobotomised humans to support a help to buy scheme for priced out first time planet conquerers. The BOE would be taken over by the galaxy's lowest life forms....we wouldn't see any difference. 

"Revenge of the Estate Agents"?

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13 hours ago, Wayward said:

Yes...I think he means hand the keys back AND pay any shortfall.

The only way there will be negative equity is if they have MEWed massively. Like examples of mortgage for 100k in 2001, same house in 2018 mortgage of 280k. Plenty of those stories. In those cases it's appropriate for the bank to demand immediate payment using the obvious untaxed cash windfall, with immediate eviction on failure to pay.  No forbearance for the greedy or dishonest. 

Others, with small loans who can meet interest payments....guidance seems to be extend IO terms til death or senility, then repossess the house. 

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  • 301 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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