Interest only Mortgage - sign this petition pls

ACG

Now who is spouting nasty comments? I just asked a question.

Having since read your peition, it is beyond ridiculous. I could rip it to pieces without even trying. But the long and short of it is Interest only is mentioned on the KFI, the offer, the application form, the reasons why/suitability letter, every mortgage statement ever received and on the statements it has an opening balance, list of payments and closing balance. Closng balance being the same as the opening balance despite 12 payments is a dead give away.

The banks made a commitment to offer a deal and then put the customer on their standard variable rate. They do not have to do anything other than that, although most will allow the customer to switch to a more favourable rate...but even when that happens customers tend to make very little effort in helping themselves by making overpayments. I regularly see people who would rather pay £70-80 a month on sky that pay their mortgage down and stick their head int he sand.

Edit: Just to add, I have only ever done one interest only mortgage on a residential basis. Clients had their reasons for it but had the money to clear the balance in full 3 times over if they wished.

exiled_red

What is your issue with the selling of these products? The fact that you have to pay the capital back or that people are finding it difficult to move off interest-only and on to repayment mortgages because of the affordability criteria?

Personally I don't like interest only mortgages and would never choose one for myself, but I think that these products work well for certain situations. These situations rely on having a suitable repayment plan to repay the capital which you believe would provide better value than buying on a repayment mortgage. If you have chosen it because the monthly payments are cheaper and have no plan in place to repay the capital you will find yourself in a difficult situation.

AnotherJoe

BritGuy wrote: »

Being the net, I am not entirely surprised that there are some very nasty people on it, but quite a few seem to be gathered on this thread.

Your silly comments aren't welcome and rather than smugly citing your own situation, why not take time to read the Guardian report I also list on the Change org page which is a reality, which just 1 person has posted here.
.

The Guardian report is as facile as the petition.

To put people in the position they would have been in, had they not been offered a repayment mortgage, would be to put them in rented accommodation (sine they couldnt have afforded to by house), paying more in rent than mortgage payments ,and not gaining from any rise in the value of the property.

So, that would mean the government getting backdated payments for the difference between rent and mortgage that they've paid over the past 20-30 years, plus confiscation of any equity in the house.

Why would anyone vote for such a cruel outcome?

Superscrooge

I can't see anything in the Guardian report that suggests any mis-selling.

It is just a report that an estimated 934,000 people have an interest-only mortgage and have no strategy in place to repay the mortgage at the end of the term.

https://www.theguardian.com/money/2015/sep/04/million-interest-only-mortgage-repossession-citizens-advice

I've got a 0% balance transfer credit card and have no strategy in place to repay the balance when the 0% period expires. I must have been mis-sold. I better start a petition to get some compensation! .

Alice_Walker

BritGuy wrote: »

read all the facts and use your brains rather than your keypads first.

It's a shame you didn't follow your own advice when taking out your mortgage.

For reference, I had an interest only mortgage when I started on the property ladder. I was aware from day one that I would need to pay it off at the end of the term and had a guaranteed method of doing this. If others failed to do this then they need to ask themselves why, not anybody else.

dunstonh

It's a valid campaign which effects many many people who were sold something that should never have been made available in the first place.

It is not at all valid.

Sell your house, move to rented accommodation and gift any gains in your equity to charity. That will put you back in the position you would have been had you remained in rented accommodation. In fact, you should also donate a further amount as the mortgage interest paid was probably lower than the rent too.

You are trying to create a foolish petition based on flawed assumptions that really come from your own failures. The risk warnings on interest only were given. If you chose to ignore them then it is your own fault and the Government should not do anything for you.

Just because every single response so far has disagreed with you, there is no need for you to turn nasty.

shortcrust

Who takes out a mortgage without reading the basic details?! We're not talking about small print. We're talking about big headline numbers. If you can set up a change petition and post on here you really do have the minimum skills required.

davidmcn

BritGuy wrote: »

It's a valid campaign which effects many many people who were sold something that should never have been made available in the first place.

May I wish you and the one other person who appears to agree with you all the best in your crusade.

zagubov

I'm on an IO offset mortgage. Overpaid it for many years to pay off the capital, took money out to help disabled relative, now overpaying again to pay off all capital by end of mortgage term.

Found it to be a very useful. Always knew it had to be paid off, and I suppose I treated it as a virtual repayment mortgage that also doubles as an emergency fund.

densol_2

I had a self certify interest only mortgage 15 years ago. It was the only way we could get / afford the house I have now. I knew EXACTLY what I was getting into. When finances improved, I switched to a normal status repayment mortgage.

I hate all this ' miss selling drivel'