Interest only mortgages.....
- Thread starter peteblue
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Yarrgh
Player Valuation: £70m
If you can afford to pay the capital repayment as well as the interest then there is no difference apart from flexibility in how you are paying off that capital given that it will also have an effect on the interest as well.
It worked for me (interest only), but mine is not a huge mortgage compared to some, and I can afford to overpay about £600 compared to over what a capital repayment mortgage would be - so once I started paying the capital once I established my "career" it turned out to be a great decision and the mortgage will be paid off in full with 10 years to spare at the current payments, even with a 5% increase in mortgage rates which is probably where I'd start to worry except that I am trying to pay down the capital now to counteract the monthly outgoings well in advance.
Like @The binman chronicles said, it's unlikey you'll be offered one.
Given how leveraged many people are a large rise in rates will have a devastating effect.
D
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Hello you boring mortgage experts, do some work and get off GoT.
lancs blue
Player Valuation: £35m
Invest 50 a month on lottery tickets forc25 years. Sorted
lancs blue
Player Valuation: £35m
Buy to let' are common for interest only. The problem is people don' arrange a repayment vehicle. When your 75 and the lender knocks on your door that's when reality hits
Anyone in an help to buy ISA?
I've decided instead of renting I'll stay in my ma's for a few more years, save into one of these and hopefully by my early 30's I'll be ready to get on the ladder.
Haven't a clue what type of mortgage is best though. I'm really uneducated when it comes to this sort of thing
I've decided instead of renting I'll stay in my ma's for a few more years, save into one of these and hopefully by my early 30's I'll be ready to get on the ladder.
Haven't a clue what type of mortgage is best though. I'm really uneducated when it comes to this sort of thing
LowerGwladysLad
Player Valuation: £750k
Pretty much the same as you. 23, had my help to buy for just over 2 years, put a chunk in to start it and putting the max £200 a month into it, will let it grow for a few years then see where I am, reluctant to throw dead money into renting my own place. No idea about mortgages, I'll swot up on them nearer the time.
evilwebby
Player Valuation: £50m
Of course. but that is the inevitable consequence of 40 years of debt accumulation built on the back of a bond market that has risen further than anyone imagined possible. Most people don't even realise that we are right in the eye of the greatest financial bubble in history.
Back when interest rates were 15% the suggestion that rates would fall so far that eventually you would be lending money and PAY THEM money in doing so (for that is what a below-inflation yield effectively is) would seem like cloud-cuckoo land... and yet, here we are.
When it goes pear shaped.. well, just look at Greece, Argentina, Venezuela. etc.
Yarrgh
Player Valuation: £70m
How does hyperinflation affect your mortgage? Could you rock up with a shopping trolley of £50 notes and pay off your mortgage as essentially both the debt and cash were worth the same amount even if both now were worthless? Presumably better to do as quickly as possible with variable rates going through the roof too.
Brendan Janus
Player Valuation: £40m
With interest only mortgages, you just pay the interest only ! 
evilwebby
Player Valuation: £50m
With interest only mortgages, you just pay the interest only !
It's a bit like renting.. only sexier.
Great Depression didn't happen again in the US, although to be fair it was in part the confluence of several events*. If you take out the recession immediately follow the Great Depression, the only one that's more than a blip on the economy is the Great Recession, and even it was rather short in duration. Economic stagnation, paired with high interest rates, has done more damage than recessions in the US since the 1930s.
But just like the Great Depression, the Great Recession has changed lives. My grandparents, and my wife's, stocked canned food like crazy, never able to shake out the fear of scarcity they experienced when young, no matter the balance in their bank accounts nor their distance to Walmart. People younger than me who experienced the Great Recession differently will be similarly affected.
*I don't know what the book argued, but stock market crashes are nothing like depressions/recessions.
Brendan Janus
Player Valuation: £40m
BigBlueConk
Player Valuation: £70m
I had to work my ass off for 20 odd years before I had saved a deposit and earn a salary that could afford to take on a mortgage. I am 12 years into a 25 year deal and still owe 80K. The interest on a 650 payment is about 500 pcm. (ballpark figures)
My biggest issue of all is that I earn today the same as what I did in 1998 and can not afford to make over payments.
There would be NO benefit in even trying to go interest only. Dreading interest rates going up.
On the plus side, I always reckon there are millions would swap places with me.
My biggest issue of all is that I earn today the same as what I did in 1998 and can not afford to make over payments.
There would be NO benefit in even trying to go interest only. Dreading interest rates going up.
On the plus side, I always reckon there are millions would swap places with me.
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