People in thier 60's being forced to sell homes.

Itismehonest

I think this may be part of her problem
http://www.thisismoney.co.uk/money/mortgageshome/article-2115253/Over-50s-face-mortgage-timebomb-says-FSAs-Wheatley.html

jamesd

Graham_Devon wrote: »

That's not a repayment method though.

Yes, it's a repayment method, one blessed and described as such by the FSA:

"Examples of possible repayment strategies include: ...
• on death, for example in the case of a lifetime mortgage; or
• sale of the mortgaged property, where this is a credible strategy because of down-sizing or repayment at death."

Whether Santander wants to lend in such cases is a different thing but it is a proper and acceptable repayment method so far as the FSA is concerned and raises the question of whether Santander is or isn't treating their customer fairly and what would happen if they tried to repossess the property.

It'd be interesting to see whether an attempt at a repossession in such cases could succeed, given all payments made on time and the credible repayment plan in place.

chucknorris

wotsthat wrote: »

Yeah, idiots like these - £500k house and £140k mortgage.

Some people just can't see the wood for the trees

roddydogs

"Just as people always did"? you mean to say a lot of people took out IO mortgages, and didnt bother to repay the capital when the term was up? Really.
Whats her age got to do with it, if I took out an IO mortgage for say 20 years, when I was say 20, when im 40 I will have to repay the capital, wont I?

abaxas

chucknorris wrote: »

Some people just can't see the wood for the trees

No-one has right to borrow money from someone else.

John Holmes had a million dollar penis... that doesn't mean people should lend him money.

Graham_Devon

Itismehonest wrote: »

I think this may be part of her problem
http://www.thisismoney.co.uk/money/mortgageshome/article-2115253/Over-50s-face-mortgage-timebomb-says-FSAs-Wheatley.html

40% of mortgages in Britain are interest only!

Cripes!

80% with no repayment strategy.

Itismehonest

Graham_Devon wrote: »

40% of mortgages in Britain are interest only!

Cripes!

80% with no repayment strategy.

Yes, if true it's pretty worrying for the future, eh?

Graham_Devon

Itismehonest wrote: »

Yes, if true it's pretty worrying for the future, eh?

Well, it means a LOT of downsizing.

The problem will be finding someone to buy your house off you in the first place.

Itismehonest

Graham_Devon wrote: »

Well, it means a LOT of downsizing.

The problem will be finding someone to buy your house off you in the first place.

As is the case for many already.

chucknorris

abaxas wrote: »

No-one has right to borrow money from someone else.

John Holmes had a million dollar penis... that doesn't mean people should lend him money.

You seem to have not followed the post trail correctly. My comment was OBVIOUSLY (to anyone following through the post trail) agreeing with wotsthat that someone owning a 500k house with a 140k mortgage does not fall into the category of:

'idiots out there and over the coming years many will face complete financial ruin'

and nothing to do with commenting directly on the loan situation.