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whats going to happen in years to come with interest only mortgages?
Comments
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Interesting....Interest-only mortgage crackdown may have gone too far, regulator warns
http://www.guardian.co.uk/money/2013/apr/07/interest-only-mortgage-crackdown0 -
Cornucopia wrote: »
Old news.....
Since then the BOE has imposed higher capital requirements on the banks. Contraction of lending is inenvitable in order for the eventual goals to be achieved in the longer term.0 -
neverdespairgirl wrote: »I don't think it is impossible - we just had to sign a couple of bits of paper saying we understood that we'd still have to pay the bank back the capital at some stage.
Odd, I heard on here that people with IO mortgage didn't realise that you had to repay the capital. Perhaps you're the exception?0 -
OffGridLiving wrote: »Odd, I heard on here that people with IO mortgage didn't realise that you had to repay the capital. Perhaps you're the exception?
No you heard right. You'd be amazed that some people who took out IO mortgages didn't realise they had to pay the capital back.
But of course you have to be sensationalist don't you.0 -
shortchanged wrote: »No you heard right. You'd be amazed that some people who took out IO mortgages didn't realise they had to pay the capital back.
But of course you have to be sensationalist don't you.
I can imagine people reaching the end of their IO terms and not being able to pay it off, due to shortfalls in investments, endowments, savings, pension tax free lump sums or even difficulties in downsizing in a tough economic envionment.
I certainly can't imagine vast swathes of people who simply didn't know that Interest Only Mortgage just meant that they were Only paying the Interest on their Mortgage. Not enough to have the Armageddon-like impact some seem to think it will have. It'd certainly be sensationalist to believe that.
What I find interesting is that some people keep harping on about a product that is pretty much defunct for home owners. It's almost as though they're a one trick ponyin a world that has no more need for the trick. Though no doubt low interest rates will keep them frothing for a couple more years yet, well until that falls through for them.
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