Monday, Dec 17, 2018

Keep the Plates Spinning

Mortgage Solutions: NatWest to offer L&G lifetime mortgages to interest-only customers

So this is what happens when you reach the end of your IO loan with no payment vehicle. I suppose that renting from the bank is more secure than renting from an unknown stranger and you cut out the yield off the top too. Perhaps they weren't such a bad idea after all!

Posted by crash bandicoot @ 01:17 PM (1518 views)
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4 Comments

1. mombers said...

Great thing about IO is it's a handy way to make sure you don't have any net assets to pay for you end of life care and can dump yourself on the taxpayer :-)

Monday, December 17, 2018 02:20PM Report Comment
 

2. stillthinking said...

This is delayed repossession. The banks will be selling the properties when the occupants die. So presumably you can go to the bank, get an interest only mortgage to purchase your property, and then add the interest due to the mortgage, which works because property values always go up ...

Thursday, December 20, 2018 12:08AM Report Comment
 

3. khards said...

"property values always go up ..." - They do when you keep debasing the currency they're valued in...

Thursday, December 20, 2018 10:16AM Report Comment
 

4. tenyearstogetmymoneyback said...

Mombers - providing you don't mind being dumped in the cheapest care home within the county.

Two other things spring to mind about "Lifetime" mortgages.

No chance of moving to a fully maintained retirement flat (like two of my Neighbours have) or a bijou bungalow like two neighbours who are still here. Someone I know managed to get in a Housing Association over 55s retirement flat and pays a low fixed monthly fee for her heating.

The other thing that I wonder about is what happens when the lifetime mortgage holder in this case L&G comes to sell. If the amount owed is £100K I can't see, any incentive for them to raise more than that even if the property is worth £150K. As discussed in a different thread they might go for the first cash buyer who offers more than they are owed. Does anyone know what the process for selling in these circumstances is ?

Saturday, December 22, 2018 11:24PM Report Comment
 

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