72 yo complains that Bank won't renew his Interest Only Mortgage

purch

http://www.west-somerset-today.co.uk/News.cfm?id=25520&headline=Dream%20turning%20into%20nightmare

This story should get a few "debates" going.

This bloke has had a £180,000 Interest Only mortgage for years on a property on Exmoor.

He has made no provision to repay the mortgage, and now is complaining because the Bank (every Bank/Lender) won't give him a new mortgage because he is 72.

Would you lend money to someone who has a record of not paying it back ?

P.S. He is by all accounts an odious man. My sources on the moor tell me he struts around thinking he is extremely important, and behaves as if he owns the village, which is amusing as apparantly he has not paid a penny of his own money towards owning anything :eek:

grizzly1911

purch wrote: »

http://www.west-somerset-today.co.uk/News.cfm?id=25520&headline=Dream%20turning%20into%20nightmare

This story should get a few "debates" going.

This bloke has had a £180,000 Interest Only mortgage for years on a property on Exmoor.

He has made no provision to repay the mortgage, and now is complaining because the Bank (every Bank/Lender) won't give him a new mortgage because he is 72.

Would you lend money to someone who has a record of not paying it back ?

P.S. He is by all accounts an odious man. My sources on the moor tell me he struts around thinking he is extremely important, and behaves as if he owns the village, which is amusing as apparantly he has not paid a penny of his own money towards owning anything :eek:

Had plenty of time to sort it out.

Heart bleeds if have 720k of equity.

I wonder if there may have been offers but they didn't want to pay the price.?

wotsthat

£180k IO for more than three decades during which he's built up c£900k in equity.

Ticking time bomb my ar*e!

chewmylegoff

So the property includes a holiday cottage which could be sold separately for £190,000 thus paying off the remaining mortgage? Why doesn't he just do that then?

N1AK

chewmylegoff wrote: »

So the property includes a holiday cottage which could be sold separately for £190,000 thus paying off the remaining mortgage? Why doesn't he just do that then?

But then he wouldn't be able to have his cake & eat it!

Generali

purch wrote: »

http://www.west-somerset-today.co.uk/News.cfm?id=25520&headline=Dream%20turning%20into%20nightmare

This story should get a few "debates" going.

This bloke has had a £180,000 Interest Only mortgage for years on a property on Exmoor.

He has made no provision to repay the mortgage, and now is complaining because the Bank (every Bank/Lender) won't give him a new mortgage because he is 72.

Would you lend money to someone who has a record of not paying it back ?

P.S. He is by all accounts an odious man. My sources on the moor tell me he struts around thinking he is extremely important, and behaves as if he owns the village, which is amusing as apparantly he has not paid a penny of his own money towards owning anything :eek:

The mortgage is up and it's time to repay. It really isn't that complex.

If he didn't like the contract he shouldn't have signed it. Sell up or find the money from somewhere else. Simples.

IronWolf

my hearts bleeds for this poor man and his 900k equity.

Not

RevolvingDoor

I think I'm on the side of the bank in this case.

Conrad

Is there anything particularly wrong with maintaining an interest only mortgage as long as the monthly dues keep getting paid and in the scheme of your life the debt represents a manageable enterprise?

Once again this is largely down to The FCA (FSA) placing unnecessary burdens on lenders to 'act responsibly' as defined by a very narrow view of what it means to be a responsible borrower / lender.

wotsthat

Conrad wrote: »

Is there anything particularly wrong with maintaining an interest only mortgage as long as the monthly dues keep getting paid and in the scheme of your life represents a small proportion of your equity?

I don't think there is anything wrong with this concept.

It's not what this customer signed up for though - he agreed he'd repay the loan at a set date in the future.

If he'd wanted a whole of life loan he should have sourced one.

Interesting to see what he sorts out.

[Deleted User]

Conrad wrote: »

Is there anything particularly wrong with maintaining an interest only mortgage as long as the monthly dues keep getting paid and in the scheme of your life represents a small proportion of your equity?

Once again this is largely down to The FCA (FSA) placing unnecessary burdens on lenders to 'act responsibly' as defined by a very narrow view of what it means to be a responsible borrower / lender.

I don't necessarily disagree with the general point you make but presumably his current "deal" is at an end and he needs to find a new one?

If I bought a house on an interest only mortgage and at the end of the period of the "loan" I couldn't repay my debt, and couldn't arrange a new "never to be repaid" loan, what would happen to me? Would you expect the previous lending bank to be forced to continue?

WR