Interest Only Mortgages ticking time bomb

[enaid]

Interest-only mortgages are storing up trouble, warns City regulator

Research finding that 1.3m homeowners may not be able to pay off their interest-only mortgage raises fears of repossession.



http://www.guardian.co.uk/money/2013/may/02/interest-only-mortgages-storing-up-trouble

[PlanB]

Re: Interest Only Mortgages ticking time bomb

According to that story 90% of people on interest only mortgages have a repayment vehicle in place As for the rest (a mere 10%) surely it only matters if you intend to stay in the same property for the whole life of the loan (typically 25 years) and how many people do that these days?

You can pay back the loan when you sell the property. If you're in negative equity when it's time to sell then the lender doesn't get all their money back. Do I care? No, because they happily sold the product in the first place. This is just a scare story put out by lenders in the hope of frightening borrowers into making extra payments to these banks which are full of self-interest. They're wasting their time trying to bully me into increasing my payments

[TUTTSI]

Re: Interest Only Mortgages ticking time bomb

It is also a cue for the CMC's to start the next lot of scamming the public, so let us all be aware what is coming next because we have seen how they tell such porky pies just to take money from folk promising them the world and giving them nothing.

According to that story 90% of people on interest only mortgages have a repayment vehicle in place As for the rest (a mere 10%) surely it only matters if you intend to stay in the same property for the whole life of the loan (typically 25 years) and how many people do that these days?

You can pay back the loan when you sell the property. If you're in negative equity when it's time to sell then the lender doesn't get all their money back. Do I care? No, because they happily sold the product in the first place. This is just a scare story put out by lenders in the hope of frightening borrowers into making extra payments to these banks which are full of self-interest. They're wasting their time trying to bully me into increasing my payments