Now I don't want to call Honda Accord or owt ...
but paying £0 a month means that it was an interest-only mortgage. If you were previously paying £1,400 a month in 2008 when the base rate was 2% (so your interest rate would have been 1.5%) that would mean an initial mortgage somewhere north of £1.1 million.

Wait ... no ... I am calling Honda Accord.
( Dr. Shambolic je suis charlie, Thu 28 Feb 2013, 18:03, 2 replies)

Honda Accord?
I'm guessing some kind of in-joke expression for bullshit?

All fact I'm afraid. What's the make and model of car to quote if I'm simply telling the truth?

The rates in mid-2008 were 5% www.bankofengland.co.uk/boeapps/iadb/Repo.asp and my rate stood at 4.5% (before the ensuing drop to 0%). Yes, it was an interest only mortgage that cost £1,400 a month. The mortgage was for a much more affordable £375,000 - at a 4.5% rate to begin with, followed by an amazing 0% within a year!

Show my working? If I must: £375,000 at 4.5% = £16,875pa or £1,400.26pcm

Where the fuck you got £1.1m is beyond me. I hope to god you don't work in the financial sector.
( Albert Marshmallow is a completely irredeemable cunt, Thu 28 Feb 2013, 20:26, closed)

Oh I wasn't suggesting that it was entirely bullshit.
I'm sure you might well own some property and have a mortgage.

But I'm really not sure why you're so confused about the £1.1 million since I explained it in perfectly simple terms. If £1400 is 1.5% interest monthly then the loan is just above £1.1 million. Which bit of that is confusing you? You seemed to manage perfectly well poking your own imaginary numbers into an online mortgage calculator.

The fact that you don't appear to understand interest rates or how tax works for one-man limited companies does suggest that some of this story might be a wee bit on the Honda Accord side. And the fact that you think an interest only mortgage is a good idea for property investment when we have the lowest rates in living memory suggests that it's quite a bit on the Honda Accord side. It doesn't take many brains to invest in property but ... you know ... just going from what you're saying here ... I wouldn't put money on you having enough.
( Dr. Shambolic je suis charlie, Thu 28 Feb 2013, 21:09, closed)

No'ffence like.

( Dr. Shambolic je suis charlie, Thu 28 Feb 2013, 21:14, closed)

Confused?
Not me. Maybe all this grown-up talk of mortgages and interest rates is beyond someone whose sole occupation seems to be throwing around lame insults on the internet...but I'll take it upon myself to try and explain a little of this complex world to you - consider it my good deed for the day.

First a few basic terms:

'Interest rate' - this is the % charged on the sum borrowed, with an 'interest free mortgage', this rate is charge 'per annum' (this means 'every year').

Now a simple GCSE question:

Sandeep borrows £100,000 on an interest only mortgage, his bank lends him the money over 25yrs at an interest rate of 10% per annum. What will Sandeep's monthly payments be and what will he pay in total for his mortgage at the end of the term?

Now I'll answer the question for you. 10% of £100,000 is £10,000 - this is the amount Sandeep will have to pay to finance his borrowing over one year. As mortgages are paid monthly, we'll divide the £10,000 interest by 12 (as there are 12 months in the year). This gives us a total of £833.33 a month. His total payments at the end of his term will have been £250,000. Hopefully Sandeep bought in a good area, as at the end of his term....oh fuck it, I can't be arsed.

My mortgage was for £375k at 4.5% pa interest only, giving me monthly repayments of £1,400. Any idiot with 11+ maths could work that one out.

Now piss off, I'm going to wank over my bank statements.
( Albert Marshmallow is a completely irredeemable cunt, Thu 28 Feb 2013, 21:32, closed)

Hahahaha.
Brilliant.

Soz. But imma have to repost this for everybody.
( Dr. Shambolic je suis charlie, Thu 28 Feb 2013, 21:42, closed)

Yes, so at 0% interest, you'd have to pay £1,250 a month.
I fail to see how you were £1,400 better off a month with 0% interest. Surely you meant £150.
( The Awful Puppy Bakery is still bored, Fri 1 Mar 2013, 4:00, closed)

No. That's the only bit of the tale that actually makes sense.
There were mortgages below base rate so you could end up with zero interest when they dropped. It's the rest which is twaddle. He clearly doesn't understand how income tax works or how you cannot 'invest' in property if you only pay interest and not the capital.
( Dr. Shambolic je suis charlie, Fri 1 Mar 2013, 7:37, closed)

Don't worry, I'm sure you'll get a job soon.
Chin up, eh? Keep firing off those CV's.
( Albert Marshmallow is a completely irredeemable cunt, Fri 1 Mar 2013, 9:14, closed)

Never written a CV
I was headhunted straight out of university and apart from taking a year out to have kids I've been working ever since. But it's lovely of you to be concerned. LOVELY.
( Dr. Shambolic je suis charlie, Fri 1 Mar 2013, 11:06, closed)

Kids?
Who's going to help them with their maths homework?
( Albert Marshmallow is a completely irredeemable cunt, Fri 1 Mar 2013, 11:57, closed)

I doubt they'll need much help.
They both appear to be extremely bright.
( Dr. Shambolic je suis charlie, Fri 1 Mar 2013, 12:04, closed)

I'm sure they do, compared to you.
Don't forget to remind them to "Read all the questions carefully before attempting to answer any".

Just in case they make themselves look like a massive bell-end.

Derp derp derp.
(Kliper Filllets Getting noticed by twats on the internet since, Thu 7 Mar 2013, 9:02, closed)

Dude, save your speeches for Parliament.

( The Mock TurtIe ™ --- Thinks you are a cunt, on, Sat 2 Mar 2013, 0:50, closed)

Hate to be the simpleton here. I'm no Wall Street Analyst, but...
Isn't he just negative gearing each property until he has enough equity/capital gain in order to reinvest?
(Misery McUglywife an attention seeking sociopathic fuckstain., Fri 1 Mar 2013, 21:40, closed)

The whole thing is a figment of his imagination so there's not much point trying to over-analyse it.

( Dr. Shambolic je suis charlie, Fri 1 Mar 2013, 21:59, closed)