The economic recovery increaes pace

[Ondine]

If you read the article in its entirety, you will see that it's Interest Only for three years and then reverts back to capital repayments. Although there are a few lenders that are considering coming out with a 5 year interest only mortgage. But they all revert back to capital repayments.

I'm sure this can only be good news. personally, I prefer to know that I'm chipping away at my debt. 'Horses for courses'.

[lilelvis2000]

Interest-only mortgages make a return | Money | The Guardian

Surely this is good news?

Yeah. this was on the news the other day..we've gone complete circle. Back to a debt-based housing-bubble based economy. Those bankers must do a heck of a job on their visits to no.11....Does Osborne walk a bit bow-legged afterwards?

[bobspud]

I think you may be misremembering:
http://www.speedlimit.org.uk/petrolprices.html

And £3 a pint in the 90s? Were you in central London, or were you one of those s who will only ever drink Peroni... especially on my round

Mainly drank in Islington or Liverpool street does that answer your question?

[Doggy Styles]

I can see absolutely nothing that could possibly go wrong with this...

We've not learned this salutory lesson about debt have we.

[Ticktock]

Beer was probably £3 in our local bar and probably 70p a litre it was only the 90's for godsake

I think you may be misremembering:
http://www.speedlimit.org.uk/petrolprices.html

And £3 a pint in the 90s? Were you in central London, or were you one of those s who will only ever drink Peroni... especially on my round

[bobspud]

How much was pint of beer and a liter of diesel?

Beer was probably £3 in our local bar and probably 70p a litre it was only the 90's for godsake

[Ticktock]

My first mortgage was for 56k when I earned 20k

I'd say a 56K mortgage against a 20K salary is reasonable, whether on interest only or repayment.

What we're now looking at are 250K mortgages against probable salaries of around 30K (taking average figures). Even if you have 2 wage earners on that (so 60K income) you're jumping from a 2.8 multiple to 4.16. That is unreasonable in my mind.

And as AtW says, that 60K is worth a lot less now than it would have been back when you bought.

[AtW]

My first mortgage was for 56k when I earned 20k and was an interest only mortgage.

How much was pint of beer and a liter of diesel?

[bobspud]

My first mortgage was for 56k when I earned 20k and was an interest only mortgage. It was cheap enough to get me out of my parents house and gave me enough confidence that a few years later I was comfortable with my outgoings and able to change the product and go on a beer fuelled credit spurge that spunked close to a million decade later and left me skint when the tulip hit the fan So it worked fine for me

Some people will take these and be fine others will become a cautionary tale...

[Ticktock]

Wonderful.

Can't afford to make mortgage repayments? How about we cut the repayment in half and you gamble that you'll be able to afford the full rate in 3 years?

I can see absolutely nothing that could possibly go wrong with this...

[BrilloPad]

Interest-only mortgages make a return | Money | The Guardian

Surely this is good news?