Underpaid Support for Mortgage Iinterest by DWP

andyandflo

skcollobcat10 wrote: »

If that is true, I would have thought that somebody on MSE would have told you when you were struggling.

I didn't know about this site until Feb this year. I just went by what the DWP & JC had said in the past.

If, what you say is true, I can honestly understand your bitterness, because I would have been the same.

Yes it was a sickening blow. Not only had we to use all of our capital to live off before we could get help, but we also seem to have lost the capital we put into the property when it was purchased as the bank now holds the keys. They don't seem to be making much of an effort to sell it - telling me that they are waiting for an increase in property sales. All in all close to £200,000 has gone since 2004.
As they say - it doesn't pay to save, if we did not have the capital then the state would have provided for us.
Bitter, you bet! And this is only half the story!!!

But why did you have an interest only mortgage?? Where you thinking of paying the money you had safe to pay the final insallment?

The capital sum was invested and was giving a guaranteed return after tax, of more than the mortgage interest being charged. Therefore, the capital sum was increasing at a far greater rate than the mortgage could have done.

Thanks for the comments

MissMoneypenny

skcollobcat10 wrote: »

Hello andyandflo,

I am 52 years old, I got my first mortgage at 19 years old. I have always been told/asked how I was going to repay my mortgage.

So that is approx 33 years I have had mortgages on many houses. I am assuming that you are a lot older than me?

I'm in your age box and it was the same with me. When we swapped to an interest only mortgage, the mortgage lenders held the endowment policies as proof or a repayment vehicle.

I think it is only in the last 8 - 10 years, that they stopped asking for that proof for some strange reason; ramping up of house prices by the last government perhaps and Gordon's (failed) promise of "no more boom and bust"?