One for Hamish

shortchanged_2

quantic wrote: »

I'm amazed by the number of people who have taken out IO mortgages not understanding that they are not paying off any capital, one of my co-workers was laughing at me for getting a repayment, saying that an IO is much cheaper. When I explained to her that she would never own her property no matter how long she kept making payments she was confused. I'm not sure what she thought IO meant, but she certainly didn't think it meant what it does.

I would be for banning IO mortgages, in my limited experience (family, friends and co-workers) people simply take them out because they are cheaper than repayment, with nothing in place to actual pay of the capital at any point. Others just see it as renting but you can decorate which is pretty hilarious

Spot on quantic.:)

geneer

FTBFun wrote: »

Why would they need to?

Indeed. The banks seem to be cracking down on this one quite nicely themselves.