It was the 'arrogant' bit I thought odd!
Except that when you sell a repossessed house at auction, you typically sell at 80% or less of original market value
Yes but if that happens the mortgage borrower will still owe the remaining 20% not covered by the sale of the house.
No the only reason for paying off mostly interest at the start is economics!
Not sure what you mean - you'll have to be a bit more descriptive than that 😕
To start with you owe, say £100k with a rate of say 4%. So in the 1st month you pay interest on £100k and a little capital. The next month you owe slightly less than £100k so you pay interest on that and a little more capital. In the final month you owe a few hundred quid so you pay a little interest on that only.
Ah - got me on that one 😳
It was the 'arrogant' bit I thought odd!
Well, I suppose entering a situation that you have very little knowledge/experience of, and assume you will succeed in spite of warnings could be considered arrogant, yes. Caveat Emptor and all that. He's not the only one.
