interest only mortgages

[scoobydoo]

http://www.guardian.co.uk/money/2013...ment-companies

link just for info really.

Interestingly I took out an interest only mortgage and I was fully aware what I was doing. But verbally my lender admitted to me that they never should have sold us the mortgage because of our age. We are repaying double the monthly payment to reduce the debt.

Such a shame I did not get the comment in writing

[TUTTSI]

Re: interest only mortgages

We too have an interest only mortgage and we understood what we were doing when we took it in that we would either have to sell the house before the end of the mortgage and buy something smaller with any money we have in left in equity or just walk away. Hopefully, we will sell 2 years or so before the end of the mortgage and get out the excess equity - that is the plan. Thanks also for pointing out the CMC's next scam, we were wondering what they would be up to next and hey presto they have something else to scam people on again. If you come across any CMC misbehaving please let me know Scoobs xx

[scoobydoo]

Re: interest only mortgages

Thats exactly what we told our lender when we took out the mortgage. Our plan is to downsize on retirement or even before. And that was adequate for them to make the loan. I have to say our lender has been very good and luckily we are on a tracker and at the moment we can overpay. But the comment they made was interesting and I wondered if they were getting a bit twitchy. Whether the case for saying downsizing is an adequate security for them having made the loan in the first place should be considered I am not sure. As far as I am concerned I went in with my eyes open - but then I did not have them open enough to see the property price crash

[TUTTSI]

Re: interest only mortgages

We are with unfortunately a sub prime lender who is well known for trying to repossess properties as quickly as they can, I have the evidences to stack that up. As long as we keep the payments on time we should be OK, but they are now very quick these days to get you to court and what they are trying to do is add all the charges/late fees etc to the outstanding payments. The trouble is with that the judges think that this is the same as bank charges which they are not and often do not see this as a separate issue in a repo.

[enaid]

Re: interest only mortgages

I did post this info earlier on

http://www.legalbeagles.info/forums/...king-time-bomb

The blood sucking CMCs have already gotten the idea that people are scared (as some should be if we are honest) and that people need help to get out of a mortgage possibly mis sold. They will be convincing, they will rob folks and they need to be stopped now.
It should come from the lenders that the people who may be at risk with their mortgages are fully informed as to what they can do and also informed they should only deal with the lender or someone they recommend to help them if they need it.

[des8]

Re: interest only mortgages

Now we had a normal repayment mortgage, but due to illness had problems meeting the monthly payments. Informed the building soc before we missed any payments and they of their own volition changed the mortgage to interest only "until your financial position improves". Since then I've retired (still unwell) and the lenders extended the term just as original term expired. I'll be in my mid eighties before it runs out and by then,taking inflation into account, if necessary I'll pay it off with a credit card!!!!!