From: D 
Newsgroups: uk.finance
Subject: Re: Mortgage question... go to interest only for a while?
Date: Sat, 26 Feb 2005 08:43:14 +0100

In article ,=20
m.barnard.trousers@thunderin.co.uk says...
> On Fri, 25 Feb 2005 22:36:03 GMT, Ronald Raygun
>  wrote:
>=20
> >Mike Barnard wrote:
>=20
>=20
> OK, fair enough but your tone, although not intended to pretentious,
> actually sounds like it.

Only sounds it to you I think.=20

> >> "Tsk"?  You're not talking to a five year old,  Before I've even got
> >> this far I feel you're playing the "I'm better than you" card.

Well five year olds do usually go round asking more and more people until=
=20
they get the answer they want to hear.
=20
> Oh, agreed, very serious.  But bear in mind you don't know the whole
> of my circumstances, where I am, what I do, how old... etc.  It all
> has a bearing but that wasn't what I asked originally.  More on that
> later.

Well tell us the circumstances you think are important in your first post=
=20
otherwise everyone is just guessing at what's best.
=20
> I'm on the South Coast and nearly 50 years old.  To move away to a
> cheaper area means moving half way up the country, to be realistic.  I
> have 23 years invested in my job here and can take early retirement in
> nearly 2 years time.  THEN we're selling up and moving to a MUCH
> cheaper area and making a change in careers, but just how much of our
> personal life do you need to know?

I think you'll get a shock if you think moving half way up the country=20
will be cheaper. What about renting somewhere smaller where you are, or=20
ask the council if they have any properties for rent that no one else=20
would take. If your money situation is so bad (and =A3500/month to live on=
=20
after mortgage costs is bad with a family) then desperate times call for=20
desperate measure.
=20
> actually predicts this?  Have you or are you thinking of selling up
> and moving into rented to avoid this pitfall yourself?

Yes - sold up, new job and moved abroad.

> Look at some prices.  =A3750 pcm will rent a 2 bed flat at the most.
> That saves less than a change to interest only, incurs selling costs,
> removals costs, disrupts my family, my sons school...  And I'm
> GUARANTEED no equity at the end.

No. You get the equity out of your house now if you sell and move to=20
rented accomodation. You are gambling this against (and only against if=20
you go to interest only loan) possible future rises. And you will still=20
have the selling costs, etc in 2 years time. School isn't disrupted if=20
you move to rented accomodation in the area.
 =20
> >> Agree on the affordability, but not on the selling up.
> >
> >"I know I can't afford it but I'm keeping it anyway."  --  Tsk.

Yep. Asks for advice and then not only ignores it but argues against it.=20
If you are going to go interest only then just do it and don't bother=20
replying to those who tell you it is a bad idea.
=20
> Bare bones is..
>=20
> I need a roof above my head.
>=20
> It's no cheaper renting for me.

Ah but is that really true. Probably not if you try to rent the same size=
=20
accomodation but see above.

> I don't either, but I really don't think prices are about to tumble...
> unless you KNOW differently.  Otherwise you're just scaremongering
> whay MAY be.

Yes but you can guarentee now your financial situation rather than=20
guessing which way things will go and if money is so tight I know which I=
=20
would rather do.

> >> Here 120k will buy a flat if I'm lucky.  This is not a cheap area.
>=20
> >What's wrong with a flat?  What's wrong with a cheaper area?  You seem
>=20
> See above.

Doesn't suit my lifestyle so I won't do it and hang the consequences.
=20
> >>>Ask the Japanese.
> >>=20
> >> "In" joke I guess.
> >
> >Joke?  So you think a 90% house price drop is funny?
>=20
> So for us who have NO idea what you're on about, whats this Japanese
> link?  Where do you get 90% drop from?  Am I to guess that thats what
> has happened in Japanese housing?  When, and what was the cause?  Are
> there any similar trends happening here in the UK?  Heh, lots of
> questions.

See uk.finance in google groups ad naseum.
=20
> >  Yes, of course
> >you do, because "it can't happen here".  Now who's condescending?
>=20
> It's a strange world and anything can happen.  Who would rationally
> say a country would get away with murdering millions of people in gas
> chambers, but it happened.  BUT I have no reason to believe prices

And we get a GODWIN at the end for good measure. Thread ends here...

Cheers

D.