Got a mortgage? Make sure you pay attention!!

Sunsaru

https://www.express.co.uk/finance/personalfinance/1785049/martin-lewis-mortgage-rates-interest-only

*facepalm*

CSI_Yorkshire

An all too common excuse as well - "the bank didn't inform us".

How can people pay so little attention to these things, and then say that it's not their fault because it wasn't drip-fed to them.

JReacher1

You would think a house bought 40 years ago would be on a very small mortgage anyway. What was the average house price back then?

sheramber

JReacher1 said:

You would think a house bought 40 years ago would be on a very small mortgage anyway. What was the average house price back then?

Bought three bedroom detached in Scotland for £26, 000 in 1981.

TBG01

CSI_Yorkshire said:

An all too common excuse as well - "the bank didn't inform us".

How can people pay so little attention to these things, and then say that it's not their fault because it wasn't drip-fed to them.

Baffling isn't it.

Lenders/Solicitors spend time putting together reports, conditions etc. 

Clients are sent documents to sign on the basis they've read and accept whats been out lined in the reports and the conditions etc.

Clients are then negatively impacted by something they've signed up to.

"Why wasn't I told about this. Who can I sue. Solicitors are awful".

MultiFuelBurner

JReacher1 said:

You would think a house bought 40 years ago would be on a very small mortgage anyway. What was the average house price back then?

Exactly this, hardly the big gasp issue even if the property was worth £40k in 1983 imagine the price now and the equity.

tooldle

I didn’t think it was possible to have interest only ( no repayment vehicle) all those years ago. Even in the 90’s evidence of a repayment vehicle was required for an interest only option. If my memory serves correctly interest only without a repayment vehicle became common in the 2000’s.

LHW99

tooldle said:

I didn’t think it was possible to have interest only ( no repayment vehicle) all those years ago. Even in the 90’s evidence of a repayment vehicle was required for an interest only option. If my memory serves correctly interest only without a repayment vehicle became common in the 2000’s.

There were interest only mortgages being sold with endowment policies / unit linked investments in the 1980's. However, when endowments began missing targets, many people sold them / made them paid up, or gave up with the unit-linked policies.That left interest only morgages which either had no repayment vehicle.

Also where the policies / investments only paid a part of the debt after 25 years, the outstanding amount remained as a debt with the lender.

Presumably this happened, and the couple hadn't realised that the rest of the debt remained as interest only, rather than ensuring it went onto a repayment basis.

ProDave

Apart from anything else, back then a normal mortgage term was 25 years, so did they not even wonder why they were still paying the mortgage 15 years after then expected it to finish?

TBG01

ProDave said:

Apart from anything else, back then a normal mortgage term was 25 years, so did they not even wonder why they were still paying the mortgage 15 years after then expected it to finish?

Bold of you to think they read what length of term they signed up for.

AlexMac

JReacher1 said:

You would think a house bought 40 years ago would be on a very small mortgage anyway. What was the average house price back then?

The house I bought in 1985 for £34k is worthwhile well north of £750-800k now so I can’t see this being a big problem?  As we approached 74 years of age, we thought we’d have to repay our interest only loan… but then the lender (the wonderful Nationwide) came up with a “lifetime loan” on 2.6%.  So;

a) I’m laughing (schadenfreudy?) at current rate rises, and
b) it’s not our problem; it’s the kids!  

But yet yet another example of how unfairly the capitalist dice is loaded against our kids and, even worse against the grand-kids. GD #1 will never afford to buy even though she now earns more than I ever did!