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teddyboy

Anyone Know What Percentage Of Mortgages Are I/o-btl-repayment?

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As above.

We all hear "Its different this time" and I believe it is. I/O mortgages are far more prone to Interest Rate rises for two reasons.

1) Any increase in IR's affect 100% of their payments, whereas a repayment will only be affected by say 80%

2) They are on the edge of affordability/Yield and do not have the le-waqy for a rise.

I think the possible 0.5% rise over the next 12 months or so could be enough to force a MASS sell-off and we would have the forced sellers that we need.

TB

Edited by teddyboy

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As above.

We all hear "Its different this time" and I believe it is. I/O mortgages are far more prone to Interest Rate rises for two reasons.

1) Any increase in IR's affect 100% of their payments, whereas a repayment will only be affected by say 80%

2) They are on the edge of affordability/Yield and do not have the le-waqy for a rise.

I think the possible 0.5% rise over the next 12 months or so could be enough to force a MASS sell-off and we would have the forced sellers that we need.

TB

I heard/read a stat that said either 30% or 40% (can't remember which) of FTB's were IO but I don't know about BTL's

I would guess that with the pro's like TTRTR that they would not expose themselves to IO - but I would have thought that gullable Joe and Josephine Public will have been taken in by the spin from the EA, Mortgage Broker etc. - I'd guess at over 50% of private BTL'ers would be IO

Come on you bulls tell us whether you are IO or repayment

Agree with everything you say TB - it's going to be a hard lesson for many

CS

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Those clever folks at in2perspective have produced a graph from CML stats . . . . .

in2perspective link

:)

This doesn't say whether these numbers are for new mortgages, or for all mortgages. The numbers change quickly year to year, which would suggest that they are new mortgages, but not necessarily so. And the original question was what proportion of FTBs are taking on IO mortages. I would think that more FTBs would take on IO mortgages than people remortgaging.

Billy Shears

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As above.

We all hear "Its different this time" and I believe it is. I/O mortgages are far more prone to Interest Rate rises for two reasons.

1) Any increase in IR's affect 100% of their payments, whereas a repayment will only be affected by say 80%

2) They are on the edge of affordability/Yield and do not have the le-waqy for a rise.

I think the possible 0.5% rise over the next 12 months or so could be enough to force a MASS sell-off and we would have the forced sellers that we need.

TB

Interest Only.

"Dear Bank, I agree to buy this property at X amount. I just can't yet.. Can I pay you back when I can afford.. i have lost my sarcasm mojo.. oh my god..

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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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