Interest Only Mortgage - Repayment Vehicles?

Thrugelmir

Silvertabby wrote: »

I'm amazed that any mortgage lender is still offering IO loans!

Conditions and limitations are attached. For a small group of people they are suitable.

Thrugelmir

NoNoDrama wrote: »

But isn't evidence you can afford to downsize the repayment vehicle in that case ?

What's the evidence? Downsizing may not release a huge sum of money. As it's smaller properties that are in demand and fetch relatively high prices.

Also as time passes there's a risk that the mortgage may potentially become unaffordable. If you haven't managed to reduce the capital balance owed in a period of exceptionally low interest rates. Then there's obviously concern that as when interest rates. There'll be increasing financial distress to bear.

Lenders will take all the steps necessary to protect themselves against any claim or complaint.

ThePants999

brit1234 wrote: »

Remember the value of your property can go down as well as up.

Something that's true of most actual repayment vehicles too!