Oh Dear: Interest only mortgages

[Lockhouse]

I've still got two endowment policies designed to pay off my first mortgage that I took out 22 years and several houses ago. I was young and naive at the time and in those pre-Internet days the world was a different place when it came to finding out about stuff.

Both policies are on course to pay out approximately 2/3 of the originally estimated value. I have no option but to continue paying them to term as any other option (cash, sell, fully pay up etc) will cost me a bundle. Needless to say for the past 17 years all my mortgages have been repayment.

[DodgyAgent]

whose clever idea was this then...

Homeowners in their 50s 'facing interest-only mortgage timebomb' after taking out loans during boom years | Mail Online

why do people gamble with anything other than a repayment mortgage ?

Milan.

Milan you are a great guy but what a stupid generalisation. It presumes that the money that is spent on the repayment is better invested on the returns in an endowment than spent on some other investment or spunked away on fast cars booze and women. Interest only is a good way of funding something that will gain capital value which is what I have done and made handsome profits too. When time is up I will simply downsize the house. It is a better investment than placing contractors for a living .

[milanbenes]

DA,

your dictionary definition is correct,

however the majority who need protecting from themselves do exactly what you siad and spunk it all away on crap and then at the end of the term start crying

hence, the product should be restricted availability to those for example such as your good self who are smart enough to understand how to behave with such a product

Milan.

[NotAllThere]

Interest only mortgates are standard procedure in Switzerland. My advisor has finally managed to understand that I want to repay significant chunks of my mortage.

[AtW]

No one in their right might will buy them - but there are some very very stupid investors out there.

Those 100+ years bonds were created for BoE.

[Support Monkey]

Endowments were sold as the thing to have back in the 80 before it all went pop, it was seen as a good idea, the same as PPI, every man and his dog had them.

What the majortiy should have done when the mis-selling was first outed was to complain about it and get there mortgage changed and the endowment cancelled (this basically put you back to where you would have been without the endowment) but a large percentage of these people were lazy and never bothered so now their moaning they will not have enough to pay off their morgage

All they needed to do was write a letter to their provider, the same as PPI, All these companies that says they can claim back your PPI for a cost are making a fortune just because people are to lazy to do it for themselves.

[Bacchus]

why do people gamble with anything other than a repayment mortgage ?

Milan.

You're a contractor man! MTFU and get creative

I have various mortgages, all interest only, supported by a variety of investments including endowments (I am very well endowed...) and pensions.

Some are performing better than others, but on the whole it's all looking pretty good

Repayment mortgages are for middle middle middle class permies

[edit]actually I've just read the DM article, it seems to me aimed at people who have taken out interest only mortgages with no way of repaying them, they deserve to have their houses and savings confiscated and their first-borns sent up chimneys[/edit]

[milanbenes]

Bacchus,


all the best with it


Milan.

[MarillionFan]

I've got an interest only mortgage.

But then again I've got the savings to pay said mortgage off and have them invested elsewhere at a higher rate of interest than I pay the bank. So effectively they can feck off, I aint paying it off.

[Bacchus]

Bacchus,


all the best with it


Milan.

Cheers