Smi/interest only mortgage

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  • Pixie5740
    Pixie5740 Posts: 14,515
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    Mr ginge- 20k, not that this has anything to do with the initial query??

    It is very relevant. According to your OP you were advised to take an interest only mortgage and set up a repayment vehicle (ISA) for the capital. You now want to make a complaint to the ombudsman. About what exactly? You weren't mis-sold, you received advice and you didn't follow it. As has already been explained to you a repayment mortgage would have been no use to you because the repayments would have been broadly similar to the interest only mortgage payments plus however much you were supposed to be saving in the ISA. If you couldn't keep up the repayments on a repayment mortgage the lender would have eventually repossessed or might have consented to switching you to an interest only mortgage so you're no worse off now that you could have been with a repayment mortgage. If anything you could well be better off.

    There isn't a magical solution for your situation. You either thrown yourself to the mortgage lender's mercy and hope that they extend the mortgage of your term indefinitely or you accept that sooner or later the place will need to be sold/repossessed.

    I too find it incredible that after 20 years there's no equity in your home whatsoever.
  • antrobus
    antrobus Posts: 17,386 Forumite
    My reading of the OP is that the poster wants to complain to the FOS about their current dilemma and not what happened twenty years ago.

    Whether there is equity in their property I do not know. Depends on where it is.
  • Pixie5740
    Pixie5740 Posts: 14,515
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    antrobus wrote: »
    My reading of the OP is that the poster wants to complain to the FOS about their current dilemma and not what happened twenty years ago.

    Whether there is equity in their property I do not know. Depends on where it is.

    Who would the OP be raising a complaint against regarding her current situation?

    Is the OP stuck between a rock and a hard place? Yes. Is complaining to FOS going to get the OP anywhere? Unlikely. It's time for the OP to explore other avenues which includes eventually selling the property.
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