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

Thrugelmir

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 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.

Why should borrowers "blackmail" lenders? The contract terms are clear at the outset. The balance is now repayable.

The couple obviously don't have the income to repay the debt on an ongoing basis. So repayment of the entire debt seems the appropriate solution.

Interest only mortgages are a factor as to why house prices remain so high. Bursting the I/o bubble will accelerate a return to normality. Not least by reducing banks exposure to mortgage debt.