It's time for an Interest Only Mis-selling campaign

mikeb222

Well, you guys can abuse me all you like, but it's not just me who thinks this is going to be a massive problem in the future.

http://www.guardian.co.uk/money/2006/jul/22/mortgages.property

To "bankrupted", you call me an idiot which I agree I am, but then you have presumably been bankrupted yourself, so are you not an idiot also?
And to "michaels"-your a betfair interenet gambler for gods sake-say no more.
Get off your high horses, the lot of you.

TrickyDicky

And people keep complaining about the nanny state.

After reading that article, if they were to take it to court - the argument should be that the general public are too stupid to have them - rather than the lenders misselling them!

Societies remind holders of interest-only mortgages that they need a means of repaying the loan when the loan period expires when they send the annual statement out. However, it is of course up to the borrower to take action

MrCarrot

When people take out interest only mortgages I'm not sure what house price rises have to do with it?

Surely at the end of the term, even if house prices have gone up, the house needs to be sold in order to repay all of the capital? Although you'd have more money than you started with (assuming prices had gone up by a lot) you'd still be out of a home and probably require a new mortgage to purchase another property which would have also gone up in value.

dwsjarcmcd

Rather than asking about misselling of interest only loans, which isn't going to happen, would you not be better advised to think about a strategy to get yourself out of the mess you are in? How are you going to pay off the arrears? How are you going to start repaying the lender (which incidently doesn't need to be by changing to a repayment mortgage if the company won't let you).

Take some proactive action to improve your position instead of devoting energy to a lost cause.

ginvzt

mikeb222 wrote: »

Well, you guys can abuse me all you like, but it's not just me who thinks this is going to be a massive problem in the future.

http://www.guardian.co.uk/money/2006/jul/22/mortgages.property

To "bankrupted", you call me an idiot which I agree I am, but then you have presumably been bankrupted yourself, so are you not an idiot also?
And to "michaels"-your a betfair interenet gambler for gods sake-say no more.
Get off your high horses, the lot of you.

That article is from 2006, about the same time as, I guess, you took out your mortgage. So, you didn't do a proper research before you took out the IO mortgage, you lied to the bank and yourself that you can afford payments (no one in its own mind would take out a loan they the know they cannot afford to pay!!!).

It is all your own fault. Every mortgage surely states the amount that will have to be repaid once the term finishes (be it 25 years).

morg_monster

Gosh that old post from 2006 from the OP that someone dug up - amazing - isn't it how times change! Someone asking for 90% LTV in the mortgage board these days pretty standardly gets a recommendation to save more. I mean I know it makes sense as you don't have much choice at that level these days; but still you can see why people like the OP feel that they have been misled when no-one said to him at the time "120%? With credit problems? Are you actually MENTAL?!!". To be fair a lot of people thought there was nothing wrong with >100% mortgages at the time (NOT everyone, I know), just blindly saw the HPI going up and up. i can see why financially not-so-savvy people are feeling a bit hard done by now. But I do NOT agree it is mis-selling, the idea is ludicrous. We all make bad decisions sometimes. Just some people make them with more at stake than others, and without really doing enough research. People probably spend more time researching their new TV or laptop than they do a financial product like this. Madness.

Also wanted to add - I am loving that the guardian article posted by the OP to back up their argument was printed BEFORE they got their mortgage. jeez!

ginvzt

morg_monster wrote: »

People probably spend more time researching their new TV or laptop than they do a financial product like this. Madness.

Also wanted to add - I am loving that the guardian article posted by the OP to back up their argument was printed BEFORE they got their mortgage. jeez!

Absolutely agree on the research!

_Andy_

mikeb222 wrote: »

Well, you guys can abuse me all you like

No abuse - just facts.

but then you have presumably been bankrupted yourself, so are you not an idiot also?

Strange presumption to make. No and no.

Get off your high horses, the lot of you.

Get a grip on your life, take some responsibiity and stop blaming others for your errors and fraudlent applications then.

_bankrupted

mikeb222 wrote: »

To "bankrupted", you call me an idiot which I agree I am, but then you have presumably been bankrupted yourself, so are you not an idiot also?

Mikeb I did not call you an idiot. My comments should be taken in jest and are related to an "idiotic" request about a mis-selling campaign. I am sure I have made idiotic comments in the past! And I am sure they have been pointed out to me.

Just think about it for a minute.. What have you been mis-sold? If you think you have been mis-sold something then we would like to hear your comments.

Mis-selling is deceiving someone about a product. That is why you have received a lot of negative comments. I even posted the background to the endowment mis-selling campaign.

You are trying to push the responsibility of a bad decision on to someone else

Please tell us what you have been deceived about?