Interest only mortgage help please

katejo

Thrugelmir wrote: »

There was never any assurance as to the future direction of house prices. People in general saw no reason for the bubble to burst. Now with hindsight the truth is laid bare.



That moment was 7 years ago. Ball has been in your court for a long time.

I bought my current house 7 years ago on a repayment mortgage. I would never think of having a cheaper interest only mortgage with the assumption that prices would only increase. I am puzzled as to why your mortgage advisor would have suggested this option. Were you overstretching yourselves at the time so couldn't afford a repayment mortgage?

getmore4less

93k/(12*23)=?

save that each month job done + interest on savings

or overpay job done even sooner.

or wait for James.

Yorkie1

glynb wrote: »

Hi,
In 2006 we arranged an interest only mortgage of 90k through a broker who assured us it was the best option at that moment. so, 7 years later we are still paying it and the capital still needs to be repaid at the end of the term which is worrying us as I only have 23 years of my working life left. ...

We owe all together around 93k (after all fees were added) House is worth (according to zoopla) around (top end) 113k at the moment.

You say you've got 23 working years left, but how many years until the end of the IO mortgage?

Thrugelmir

katejo wrote: »

I am puzzled as to why your mortgage advisor would have suggested this option.

Many people did. In the belief that the economy was in a golden age where incomes would rise. Making repaying the debt manageable.

kingstreet

More than likely the OP had a credit problem and was unable to get a mortgage elsewhere. The broker will have suggested interest-only for a limited period while the OP rebuilt his credit history, so in a few years he could remortgage to a high street lender, get a "normal" rate and move to repayment.

Seven years later, the OP still has a trashed credit file, still on interest only and now facing reducing years in which to repay the debt.

The only way the broker is at fault here is if this plan was not fully explained and documented.

OP why is your credit history still poor seven years after the attempted repair?