Misery This Summer!

[Jonnybegood]

When you take into account everyone who has a mortgage I think £80,000 is about the average.

Of course some will have far higher but others far less and some no mortgage at all, So a typical mortgage I would say around £100,000.

Does this add up? You say 'When you take into account everyone who has a mortgage' and then in the same statement 'and some no mortgage at all,' Sound like dodgy figures to me!

But seriously £80,000...I,ll believe you I wonder what the average morgage was taken out two years ago? These are the people who will be feeling the pinch!

Killerbee

What I meant is £80,000 back in 2005 but probably your looking at around £100,000 today.

Those who have no mortgage will not need to worry and there are plenty of them around as well, So for it all to go tits up just because a rather small percentage are coming out of a fixed deal just doesnt add up to me.

[b0rk]

The problem is that the IFA or Broker has to document EVERYTHING to prove that they explained it and the idiot understood it, it's clear that many do not know what they have.

In a FSA regulated world I feel the onus will shift away from the lender proving they were diligent towards to borrower proving negligence by the lender. I do agree that much of the endowment mis-selling scandal is due to lack of documentation highlighting the risks which is why I suspect modern IO mis-selling will be different this time.

[Levy process]

I know people with PhDs in financial mathematics, and they tell me the same things. They also have no clue how money is generated.

If you only know a little about this stuff, you have a tremendous headstart for sorting your finances before everything goes pear shaped.

I've met people with "PhDs" in financial mathematics that couldn't tell me how to find a square root using Newton-Raphson. I know this sounds like a "standards aren't what they used to be" moan, but they aren't! If you can't do the above you don't deserve to have anything above an A level in maths, and even that is making a big allowance for standards slipping. Not all PhD's are the same. Beware.

Edited June 4, 2007 by Levy process

[Levy process]

Duplicate removed

Edited June 4, 2007 by Levy process

[Nelly]

There was someone a couple of weeks back, I think it was on mse said he was remortgaging to a 2 year fix saving £25 a month but the arangement fee was £600

Yeah...guess what £25 times 24 months is?

Kin unbelieveable!

They probably all banging the arangement fee on the mortgage anyway, no doubt encouraged to do so by 'The aranger'

and therefore paying back double (often more) than the actuall fee anyway.

[since the beginning]

As good a plan as renting if you ask me - at least they will be 12 months futher into paying off a mortgage. If they cant see any relevance at all they are fools but if they think owning is better then renting then they are probably correct.

As usual people on here are making the situation black and white and generalising, I think we all probably no someone that has gained from I/O and will all know someone that is sure to fail due to I/O.

I/O mortgages are good if house prices are rising and look like they will continue to rise and bad otherwise (relative to renting.) I would suggest that most people that bought before 2003/2004 haven't got much to worry about. Lets face it they can probably go back to renting without losing to much. I reckon that the major impact of I/O mortgages will be in revealing just how bad pension provision is and has been. People have got caught up in thinking BTL and their houses represent free money and have probably neglected traditional ways of saving for there pensions. This combined with the fact the real situation won't come apparent for 15-25 years (when Gordon is either dead or on his way) will mean there will be no one left to blame.

[Guest grumpy-old-man]

As usual people on here are making the situation black and white and generalising, I think we all probably no someone that has gained from I/O and will all know someone that is sure to fail due to I/O.

I/O mortgages are good if house prices are rising and look like they will continue to rise and bad otherwise (relative to renting.) I would suggest that most people that bought before 2003/2004 haven't got much to worry about. Lets face it they can probably go back to renting without losing to much. I reckon that the major impact of I/O mortgages will be in revealing just how bad pension provision is and has been. People have got caught up in thinking BTL and their houses represent free money and have probably neglected traditional ways of saving for there pensions. This combined with the fact the real situation won't come apparent for 15-25 years (when Gordon is either dead or on his way) will mean there will be no one left to blame.

that would depend if they have MEW'd or taken on any other loans etc in that period, don't disregard this as it will become very, very significant in the coming years.

[silver surfer]

There will always be the baby boomers, Those who have paid off their mortgages and own outright.

Now they have the money to burn, Many of the younger generation will be cutting back but not all.

The oldest baby boomers hit 62 this year and will reach the official retirement age in 2010. From 2010 to 2030 there's an avalanche of boomer retirement, with the inevitable consequences for health care and social benefits.

The majority of boomers are in a state of either idiotic denial or abject terror. The relatively well-to-do boomer, who owns their average value £200k house outright and is expecting to use equity withdrawl to fund their retirement, is in for a rude awakening. If they sell their home and take out £100k to fund a joint life annuity that goes up in line with inflation, then they're looking at a pension of about £4,000 a year plus the state pension. Their remaining £100k could get them a small car and a cosy site in a Devon trailer park. No exotic cruises or expensive golf clubs for this boomer couple, and of course they are the relatively lucky ones.

No wonder the government has just introduced age discrimination legislation, it's the only hope for all those "golden oldies" that will need to work well into their arthritic 70's and 80's.

[Levy process]

No wonder the government has just introduced age discrimination legislation, it's the only hope for all those "golden oldies" that will need to work well into their arthritic 70's and 80's.

I just don't see that happening. Companies are allowed to administer apptitude tests for selection. How many 80 year olds are going to get through those? There are always exceptions, but a lot of 80 year olds can't remember what they had for lunch.

[Guest mattsta1964]

Hi all,

In the Telegraph today, apparently when rates were dropped in the summer of 2005 a lot of people got a two year fix. When their fix ends in a couple of months they will face up to 40% increase in morgage payments. Estimates are that 1 in 5 morgages will be effected.

People who are already struggling will fall at this hurdle.

Killerbee

Looks like we'll be seeing a lot less property porn on TV don't it!!!

[killerbee]

Hi all,

Mondays Telegraph has the same article again but slightly re-jigged plus another piece on the same page about reposessions amongst btl landllords on the rise. Infact they have devoted almost an entire page to bearish news.

May be someone could do a link as I've no idea how to do it.

Thankyou

Killerbee

[Levy process]

Hi all,

Mondays Telegraph has the same article again but slightly re-jigged plus another piece on the same page about reposessions amongst btl landllords on the rise. Infact they have devoted almost an entire page to bearish news.

May be someone could do a link as I've no idea how to do it.

Thankyou

Killerbee

When can we have a TV series based around btl landlord reposessions? I'd definitely get the feet up and be cracking open the tins of lager for that one Pschht!