Interest only mortgages crisis

[stupar]

indeed sometimes it's just the way things goes.


I just look at it the same as leasing a house like people do with a car nowadays

It is interesting hearing different peoples perspectives on home ownership/mortgages.

I love my house and want to own it outright. My forecast suggests it will be paid off by my mid 50's and all going well the investment will reward my children in later life so I couldn't imagine never owning a house and forever moving around.

On the car front however, Mrs Stupar and I are looking to lease a car in the near future. Easy and affordable motoring with the ability to return the car at the end of the term and walk away if it doesn't suit or get a new one and rinse repeat.

 

[Mr Bump]

It is interesting hearing different peoples perspectives on home ownership/mortgages.

I love my house and want to own it outright. My forecast suggests it will be paid off by my mid 50's and all going well the investment will reward my children in later life so I couldn't imagine never owning a house and forever moving around.

On the car front however, Mrs Stupar and I are looking to lease a car in the near future. Easy and affordable motoring with the ability to return the car at the end of the term and walk away if it doesn't suit or get a new one and rinse repeat.

exactly and the thing about leasing is you can have a much better car than you would buy.

imagine the same with a house, you lease a lovely 5 bedroom detached house for the "children" years then downsize when the money becomes due and take the difference.

 

[mark4183]

indeed sometimes its just the way things goes.


I just look at it the same as leasing a house like people do with a car nowadays

that is one very interesting way of looking at it, made me see it a little differently. but reading above also makes me think its a fancier way of renting too.... but some I cant help but think some people are being led to think its their home and own it

 

[nilagin]

exactly and the thing about leasing is you can have a much better car than you would buy.

It is possible to buy the car you want, you don't have to lease it.

that is one very interesting way of looking at it, made me see it a little differently. but reading above also makes me think its a fancier way of renting too.... but some I cant help but think some people are being led to think its their home and own it

Unless there is an unfortunate housing price crash, they should still own some of it.

 

[onomatopoeia]

exactly and the thing about leasing is you can have a much better car than you would buy.

Nah. I just checked what the current equivalent of my car would cost to lease. £816/month.

I bought it for cash and it's cost me about £300/month since in depreciation and maintenance averaged out over my period of ownership. I've had it a long time though, it will be old enough to vote next month. Obviously for those that have to drive around in something almost brand new, driving around in an 18 year old car won't impress neighbours / co-workers / people at the gym / other mums parking badly outside the school at chucking out time etc.

 

[nilagin]

Nah. I just checked what the current equivalent of my car would cost to lease. £816/month.

I bought it for cash and it's cost me about £300/month since in depreciation and maintenance averaged out over my period of ownership. I've had it a long time though, it will be old enough to vote next month. Obviously for those that have to drive around in something almost brand new, driving around in an 18 year old car won't impress neighbours / co-workers / people at the gym / other mums parking badly outside the school at chucking out time etc.

Just checked how much my car would cost if I had leased it rather than bought it.
Over a 4yr lease period, it would cost £23,359 with a restriction of 8k miles/year.
Glad I bought it and own it.
My car won't suffer from depreciation as it won't be for sale.

 

[DG Phototraining]

I cant help but think some people are being led to think its their home and own it

I can't make sense of this statement at all

On an IO basis you are told at the offset that you will have a debt that never decreases, and reminded of that fact on your annual statement, so you'd have to be pretty damn thick to not understand this point

Added to which, its a mortgage, so you DO own your own home and hence its safer than renting as the owner is you and hence you can't be kicked out just because they want to move back in or sell it for any other reason

There are several good reasons for having this sort of mortgage, with some overseas ones having the 'term' as the end of your life (or obviously earlier sale/redemption) - a whole of life IO is then exactly like renting but cheaper and safer, and if the property grows in value that's a bonus for you too - what's not to like?

Dave