Like all sophisticated, edgy, middle class people I carry an interest-only mortgage. The idea you strive through your life to own your own home but do not similarly attempt to buy the rail franchise for your commute to work has always struck me as so illogical but even worse, so last century. My mate John has loads of money but still keeps a £200k mortgage ticking over.
However the fly in the ointment here is the bank will ring me up in a few years and say the term has finished: Can the have their money back?
I've assumed that between now and then, given a) the vast number of people who've got mortgages they can't afford and b) the fact the Equity Release is often used to fund a mortgage (for offspring) and banks love mortgages, they will have piled heavily into lifetime mortgages. However I'm not seeing huge movements yet.
Have any of you had these conversations with your banks? Do they give you more time or are they worried about lending-into-retirement?
However the fly in the ointment here is the bank will ring me up in a few years and say the term has finished: Can the have their money back?
I've assumed that between now and then, given a) the vast number of people who've got mortgages they can't afford and b) the fact the Equity Release is often used to fund a mortgage (for offspring) and banks love mortgages, they will have piled heavily into lifetime mortgages. However I'm not seeing huge movements yet.
Have any of you had these conversations with your banks? Do they give you more time or are they worried about lending-into-retirement?
Comment