Adge
Member
Registered: 28th Aug 04
Location: Lancashire
User status: Offline
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hi every1
say i get a mortage for 115.000
interest only for 5 years
after 5 years it sells for 110.000
obv i still owe 115.000 as i only being paying interest,
is it just as simple as u owe £5000 to the mortage company or how does it work?
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jrsteeve
Member
Registered: 3rd Apr 02
Location: Manchester
User status: Offline
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pretty much, plus any redemption/early repayment penalties
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Adge
Member
Registered: 28th Aug 04
Location: Lancashire
User status: Offline
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so wud u be better to just let them to take it from you and move into rented rather than be 5-10k down in cash?
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John
Member
Registered: 30th Jun 03
User status: Offline
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If they take it off you that will almost surely be noted down somewhere and you'll have big problems getting a mortgage in future.
You won't get a 100% mortgage either to stop this situation happening.
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jrsteeve
Member
Registered: 3rd Apr 02
Location: Manchester
User status: Offline
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If you're even contemplating the scenario don't buy a property. Repossession is not a good thing and will have a serious effect on your future credit options.
If you buy well there's very little chance of losing anything at all, just do your homework.
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whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
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would never happen as you would get a 100% mortgage
Therefore any deposit you may put in could be lost
Houses are the long game and within 5 years I would expect them to go up slightly
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Andrew
Member
Registered: 5th May 04
Location: Skoda Octavia Estate, Ford Puma
User status: Offline
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Plenty of new builds around at the minute to rent.
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