...next 'it wasn't my fault' problem for homeowners?

mrginge

Something like this getmore4less? -

http://www.fca.org.uk/news/interest-only-mortgages

Inevitably of course, followed by this kind of thing -

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10903280/Dont-answer-lenders-interest-only-demands.html

getmore4less

No much simpler.

Hi Borrower,

You are interest only don't pay us back when due you will have to sell your house.

If not happy with that option and want help discussing the potential alternative options.....

dunstonh

How about this:

This is an Interest-only mortgage. Your mortgage payments do not include the costs of any savings plan or other investment you may have arranged to build up a lump sum to repay the amount you borrowed. It is important to check regularly that your savings plan or other investment is on track to repay this mortgage at the end of the term.

The regular checking of the performance of any plan(s) is your responsibility. It your plan(s) fails to provide as much as you anticipate at the end of the mortgage term, you may have to sell your property to repay the mortgage.


That is an actual warning that appears and has done for many years. Lenders were quick to nip this in the bud ensuring warnings exist on every statement.

silvercar

My lender writes to me every couple of years to remind me of this, the last 2 letters included a form that they require completing detailing my plans for repaying the loan.