chem1st Posted March 16, 2012 Share Posted March 16, 2012 Of the 11.2million mortgages in Britain, about four in ten are interest-only, meaning the homeowners pay only the interest but not a penny of the actual loan. Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-2115253/Over-50s-face-mortgage-timebomb-says-FSAs-Wheatley.html#ixzz1pHEWpJJv Nearly half of the properties in the UK are mortgaged. The so called owner occupier rate of 65% is make believe. The majority of people don't own their own homes (many are merely renting them from the banks). Property is vastly overpriced due to this type of lending. The coming crisis and resulting homelessness is going to be of great proportions. Warnings were ignored. You must take action to protect yourself if you haven't already done so. Link to comment Share on other sites More sharing options...
Agent Orange Posted March 16, 2012 Share Posted March 16, 2012 I own 5 houses Link to comment Share on other sites More sharing options...
HeadingNorth Posted March 16, 2012 Share Posted March 16, 2012 Nearly half of the properties in the UK are mortgaged. The so called owner occupier rate of 65% is make believe. The majority of people don't own their own homes (many are merely renting them from the banks). Nobody rents a house from a bank. They buy it, and make loan repayments to the bank. At the end of the loan term the house is theirs. Link to comment Share on other sites More sharing options...
mj.scuba Posted March 16, 2012 Share Posted March 16, 2012 Homeowners in their 50s are sitting on ‘a ticking timebomb’ of mortgages handed out during the boom years, the financial regulator warned yesterday. During a grilling by MPs, Martin Wheatley, a director of the Financial Services Authority, raised his fears about interest-only mortgages which are coming to the end of their life – but the homeowners have no money to pay off the loan. Of the 11.2million mortgages in Britain, about four in ten are interest-only, meaning the homeowners pay only the interest but not a penny of the actual loan. Between 2011 and 2020, the FSA expects about 1.5million such mortgages – worth a staggering £120billion – ‘will be due for repayment'. Chem1st has a point, if the loans are reaching term, they have to be repaid as a whole amount lump sum, since interest only won't have dented the actual loan. The obvious solution is people will have to sell to repay it, and move into rented accomodation instead. Easier said than done though, especially in a depressed housing market and if people are in negative equity. It would be incredibly stupid of people though to have an interest only mortgage through the whole term of the loan without planing any method of repayment. Link to comment Share on other sites More sharing options...
swordfish1 Posted March 16, 2012 Share Posted March 16, 2012 Yay, today's Chem1st Evil Landlord/Houseowner/too high rents/poke my eyes out with a blunt stick thread. Where is CXC3000 with his Palestine threads when you need him? Link to comment Share on other sites More sharing options...
Cyclone Posted March 16, 2012 Share Posted March 16, 2012 Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-2115253/Over-50s-face-mortgage-timebomb-says-FSAs-Wheatley.html#ixzz1pHEWpJJv Nearly half of the properties in the UK are mortgaged. The so called owner occupier rate of 65% is make believe. The majority of people don't own their own homes (many are merely renting them from the banks). Property is vastly overpriced due to this type of lending. The coming crisis and resulting homelessness is going to be of great proportions. Warnings were ignored. You must take action to protect yourself if you haven't already done so. It's been a week or so since you've talked about the land monopoly, well done. I am surprised that 80% of people with an IOM don't have a repayment vehicle. of the 11.2million mortgages in Britain, about four in ten are interest-only and 8 in 10 of those are at risk, so that's 32% of mortgages that are at risk. I'm not sure why you want to believe that having a mortgage means you don't own your home. It's a weird assertion. Nobody else owns it, you own it, you also owe some money which is secured against it. Link to comment Share on other sites More sharing options...
shane39 Posted March 16, 2012 Share Posted March 16, 2012 Yay, today's Chem1st Evil Landlord/Houseowner/too high rents/poke my eyes out with a blunt stick thread. Where is CXC3000 with his Palestine threads when you need him? I think CX3000 is on holiday............. In Israel.. Link to comment Share on other sites More sharing options...
Cyclone Posted March 16, 2012 Share Posted March 16, 2012 Chem1st has a point, if the loans are reaching term, they have to be repaid as a whole amount lump sum, since interest only won't have dented the actual loan. The obvious solution is people will have to sell to repay it, and move into rented accomodation instead. Easier said than done though, especially in a depressed housing market and if people are in negative equity. It would be incredibly stupid of people though to have an interest only mortgage through the whole term of the loan without planing any method of repayment. They are talking about people who bought over the last 20 years though, very few of them will be in negative equity, most will be able to sell, pay off the mortgage and buy a smaller house outright with the difference. Link to comment Share on other sites More sharing options...
FACEBOOK Posted March 16, 2012 Share Posted March 16, 2012 If chem one day inherited a house, he would then own two houses. You can imagine on finding out his partner saying under her breath, "awkward". Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted March 16, 2012 Share Posted March 16, 2012 At the end of the loan term the house is theirs. Not quite. It belongs to the mortgagor (borrower) immediately on completing the purchase/mortgage. The mortgagee (lender) has only the security of a registered charge (mortgage), which lasts until full repayment. Link to comment Share on other sites More sharing options...
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