Jump to content
House Price Crash Forum

Guardian: I'm 65 and my interest-only mortgage is ending – what can I do?


Recommended Posts

0
HOLA441

https://www.theguardian.com/money/2018/jul/16/im-65-and-my-interest-only-mortgage-is-ending-what-can-i-do

Getting ripped to shreds in the comments

Many of these people thought they would sell the property at the end of the term, pocket the uplift in value, then rely on the state to house them in their retirement. (Gotta love the hypocrisy of the entitlement of these boomers) However they now look at their local council estate and decide they don't want to live there either. Finally they rely on the negative PR of big, bad, bank trying to evict a "poor" pensioner enabling them to stay.

Link to comment
Share on other sites

  • Replies 114
  • Created
  • Last Reply

Top Posters In This Topic

1
HOLA442
2
HOLA443

Can’t they buy another one on interest only, find some unsuspecting scumbag pensioner to just rent this one out to, then just bang the rents up to a level which pays off BOTH mortgages for them? 

Sometimes you have to think outside the box in the property game, make your money work FOR you

Link to comment
Share on other sites

3
HOLA444
4
HOLA445
2 minutes ago, thewig said:

Can’t they buy another one on interest only, find some unsuspecting scumbag pensioner to just rent this one out to, then just bang the rents up to a level which pays off BOTH mortgages for them? 

Sometimes you have to think outside the box in the property game, make your money work FOR you

Ah, so pensioners are scumbags...how nice!

Link to comment
Share on other sites

5
HOLA446
9 minutes ago, thewig said:

Can’t they buy another one on interest only, find some unsuspecting scumbag pensioner to just rent this one out to, then just bang the rents up to a level which pays off BOTH mortgages for them? 

Sometimes you have to think outside the box in the property game, make your money work FOR you

Don't you mean 'make someone else's money work for you"

Link to comment
Share on other sites

6
HOLA447
7
HOLA448

The original article said

Quote

I’m 65 and single and still work part time earning £23,000 a year (£1,560 monthly) on top of my private pension of £550 and state pension of £700 (both monthly). My interest-only mortgage will come to an end in November 2019 and I will still owe £112,000. The house is worth £190,000 and I want to stay in it. What are my options? PH

The only real solution is to sell and move somewhere cheaper unless they are planning to work for 25 years more and they can find a lender who thinks this is possible.

Link to comment
Share on other sites

8
HOLA449
18 minutes ago, Bruce Banner said:

It's coming home to roost now. 50%+ of the ads on Sky News are for equity release :rolleyes:.

This is the most annoying one...

 

I can't bear to actually watch it but don't need to.
Surely Equity release works best for outright owners.  Doing that on top of IO is madness.
Retired, in debt, looking for more debt?

Huh?!! 

Link to comment
Share on other sites

9
HOLA4410
Quote

I’m 65 and single and still work part time earning £23,000 a year (£1,560 monthly) on top of my private pension of £550 and state pension of £700 (both monthly). My interest-only mortgage will come to an end in November 2019 and I will still owe £112,000. The house is worth £190,000 and I want to stay in it. What are my options? PH

Quite a reasonable income for someone part time... house worth 190k and he owes 112k... where did all the money go from the past 40+ years of working?

Link to comment
Share on other sites

10
HOLA4411
17 minutes ago, Captain Kirk said:

Boomers really have no idea about the real world they themselves created. This chap has plenty of income to rent somewhere, which is his only choice.

On the bright side, boomers liquidating assets can only be negative for the housing bubble.

Another insulting generalisation.

Link to comment
Share on other sites

11
HOLA4412
9 minutes ago, Cosmic Apple said:

Quite a reasonable income for someone part time... house worth 190k and he owes 112k... where did all the money go from the past 40+ years of working?

Single so I'm guessing they actually mean divorced which - esp if there were kids involved would explain depleted savings/assets. How much space does a single person need? If the current home is a house surely they can downsize to a flat and clear a fair chunk of the mortgage?

Link to comment
Share on other sites

12
HOLA4413
3 minutes ago, Bruce Banner said:

Another insulting generalisation.

My parents are boomers and they wouldn't stand a chance in today's world. When my neighbor was selling her house a few years back I was talking to her about interest rates and she was looking at me like I was speaking Urdu. I realised she had absolutely no idea about base rates, QE or that there was a Bank of England. She seemed to be an expert in property and property prices though.

All anecdotal, I know. I'm sure there are some switched on boomers.

Link to comment
Share on other sites

13
HOLA4414
33 minutes ago, hotblack42 said:

I can't bear to actually watch it but don't need to.
Surely Equity release works best for outright owners.  Doing that on top of IO is madness.
Retired, in debt, looking for more debt?

Huh?!! 

It would certainly make you angry, but it's worth a watch to see how much they've packed into it. Equity release... "own our own home" (which they don't)... "long term care" (a plug for people farming)... you name it, it's in there. And then there's the smug smiles and nods and the toast with the red wine... a masterpiece of advertising and even more annoying than the "go compare" horror.

Link to comment
Share on other sites

14
HOLA4415
6 minutes ago, Captain Kirk said:

My parents are boomers and they wouldn't stand a chance in today's world. When my neighbor was selling her house a few years back I was talking to her about interest rates and she was looking at me like I was speaking Urdu. I realised she had absolutely no idea about base rates, QE or that there was a Bank of England. She seemed to be an expert in property and property prices though.

All anecdotal, I know. I'm sure there are some switched on boomers.

If you'd started your sentence with "Some" It would have been fine.

Link to comment
Share on other sites

15
HOLA4416
16
HOLA4417
1 hour ago, Captain Kirk said:

Boomers really have no idea about the real world they themselves created. This chap has plenty of income to rent somewhere, which is his only choice.

On the bright side, boomers liquidating assets can only be negative for the housing bubble.

...but they didn't create that world.

The economic systems that have been in place for 40 years were not implemented by boomers.

Baby boomers can hardly be blamed for being in a position to take advantage - you'd have behaved no differently in their position, hence you have no right to criticise/insult.

 

Link to comment
Share on other sites

17
HOLA4418
49 minutes ago, zilly said:

...but they didn't create that world.

The economic systems that have been in place for 40 years were not implemented by boomers.

Baby boomers can hardly be blamed for being in a position to take advantage - you'd have behaved no differently in their position, hence you have no right to criticise/insult.

 

Um well, er.  I did press home my advantage workwise, moving for big payrises in the 80s.  I also bought a house cheap but I didn't know that at the time.  I had no idea just how much money the insurance co. I worked at for 20 years was putting by in my pension.
But most importantly, I did not start a string of borrow to lets.
The anger should be directed at boomers who were very well provided for and yet still rode the BTL boom for all it was worth.  Lots of boomers DID behave differently and did not take advantage, despite facing an open financial goal.
This is because they are not the kind of sociopathic sh*ts who have to 'win' at life regardless of the collateral damage.

Link to comment
Share on other sites

18
HOLA4419
2 hours ago, Cosmic Apple said:

Quite a reasonable income for someone part time... house worth 190k and he owes 112k... where did all the money go from the past 40+ years of working?

Assuming* the questioner is a straight male, maybe he spent 95% of it on women, booze and fast cars?

Though probably he did waste the other 5%.

Hat tip to the late George Best ?

(* One must be sensitive to these categories nowadays.)

Edited by The Spaniard
Link to comment
Share on other sites

19
HOLA4420
1 hour ago, zilly said:

...but they didn't create that world.

The economic systems that have been in place for 40 years were not implemented by boomers.

Baby boomers can hardly be blamed for being in a position to take advantage - you'd have behaved no differently in their position, hence you have no right to criticise/insult.

 

Yes they did..you can't blame some ethereal 'economic system'...the policies that have led us to this disaster were implemented by people and voted for by people.

Link to comment
Share on other sites

20
HOLA4421
2 hours ago, hotblack42 said:

I can't bear to actually watch it but don't need to.
Surely Equity release works best for outright owners.  Doing that on top of IO is madness.
Retired, in debt, looking for more debt?

Huh?!! 

I think the clue is in the name : "equity release". If you don't have any equity, you can't release it. It's not a scheme for taking on more debt.

Under certain circumstances equity release can make a lot of sense. It may not result in you getting the most money, but a 400K house is no good to you when you're dead. I'd rather have a 250k house an a big batch of holidays thanks.

I do know what people mean though about ticking all the boxes. There is one add on one channel, can't remember which, maybe the company is Sun something. They go on about how the old couple "equity released" and got a new kitchen, holdiday and paid the deposit on a new house for their grandchildren. At the end there was some sort of "free gift" too. Can't remember what. Probably a pair of high waisted trousers.

The big issue of course with equity release is that the next generation will get less benefit from inheritance and any housing crash will be postponed through equity released BOMAD funds propping up the market.

The ponzi needs to fuel itself somehow. Maybe next you get to sell on your kids future earnings.

Link to comment
Share on other sites

21
HOLA4422
1 hour ago, zilly said:

Baby boomers can hardly be blamed for being in a position to take advantage - you'd have behaved no differently in their position, hence you have no right to criticise/insult.

I've never found "everyone else does it" to be an acceptable excuse, nor any other attempts at avoiding taking responsibility for your actions. Before you tell someone "you'd have behaved no differently in their position" you need to know that person well enough to be certain of that.

Link to comment
Share on other sites

22
HOLA4423
23
HOLA4424
11 minutes ago, Gigantic Purple Slug said:

I think the clue is in the name : "equity release". If you don't have any equity, you can't release it. It's not a scheme for taking on more debt.

I'm not sure about that. Equity release is a euphemism for borrowing against your house, which is why you pay interest on the amount borrowed. If you really want to release equity, you need to sell the house.

Link to comment
Share on other sites

24
HOLA4425
37 minutes ago, Wayward said:

Yes they did..you can't blame some ethereal 'economic system'...the policies that have led us to this disaster were implemented by people and voted for by people.

And it was a boomer who sowed the seed of the misery of the last decade and a half.

https://georgewbush-whitehouse.archives.gov/news/releases/2002/06/20020617-2.html

Quote

And so that's why I propose and urge Congress to fully fund the American Dream Downpayment Fund. This will use money, taxpayers' money to help a qualified, low income buyer make a downpayment. And that's important.

I'm not sure important was the right word in hindsight. Nor dream.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information