Yes but you're meant to pay it off manually, but they still have early repayment penalties!
On the topic of car finance I constantly see people with these, who probably shouldnt!
Times up, Zero interest mortgage.
- Thread starter StriderX
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Yes but you're meant to pay it off manually, but they still have early repayment penalties!
On the topic of car finance I constantly see people with these, who probably shouldnt!
It's is a truly bizarre logic that results in scenarios where only the very rich or poor can end up living in certain areas because the squeezed middle are not eligible for social housing and can't afford rents never mind mortgages. When I left home I had to move further out of London to a rough area to afford my first home. No one for me to moan to that I was being 'forced' to leave the area I grew up in as I had to pay my own housing costs.....
And I started with a repayment mortgage!
So she has an easy escape from this situation that will still allow her to own a home. I don't see the problem.
No, you had plenty of options, including the option to reject an interest only loan and continue renting at a price within your means.
Probably done better getting the interest only mortgage though. Anything bought before 2015 will have appreciated massively. Lucked into equity.
Don't see why people complain. If that was indeed his only option then for a mortgage, he should be thanking the bank for giving him that chance to make money on the UK housing market.
Interest free mortgages (especially the offset type ones) are awesome for those that take control of their finances. Those that bury their head in the sand shouldn't be blindly playing with thousands of pounds or the future of the family home. Ignorance is not an excuse. They will have been made well aware of the terms when taking the mortgage out. It's those caught in the endowment trap that I feel for.
The woman in the example is lucky there's so much equity and may get to release it before the next crash, if there ever is one.
The woman in the example is lucky there's so much equity and may get to release it before the next crash, if there ever is one.
You can easily get a 10k credit card with 24 months + 0% interest. For many that works just as well as savings for "just in case".
Rather than spending 2 years putting aside X each month in case something happens you can use the card and slowly pay it off in the following years
True, personally I try to minimise any use of credit cards in my life (never use one unless I need the protection) and very much a last resort even as a safety rope.
I don't have any problems with discipline and money but personally it makes it easier to manage my finances.
I don't have any problems with discipline and money but personally it makes it easier to manage my finances.
Soldato
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Im wondering the deal of paying to view the financial times online, considering the poorly written nonsense in the OP's quote
Lot of people here say stuff like "lol daily fail.." but to me its the same exact thing from every newspaper.
One guy i work with (who smokes way too much weed) and talks about all sorts of injustice, greedy evil banks etc...
Both him and the financial times it appears are extremely close to lizard alien overlords as their next story IMO.
I mean, what emergency requires £182,000?
Why take out a loan over only 10 years and pay interest only?
Does she have another mortgage or not?
What is even the point of this article, bank offers financial services, people who are still well off cannot pay because lack of maths?
Caporegime
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Perhaps they're digging for the next PPI scandal where every numpty with an IO mortgage can claim they were miss sold and get some dollar.
You don't need to pay, just use a google referrer.
Man of Honour
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Why?
Caporegime
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Me either, however you had several risk options when taking out an Endowment and you got letters over the duration of the policy to tell you how much it was likely to pay out, people had plenty of chance to do something about it should the policy be predicting to pay significantly less than initially thought.
to be fair some people did well with them, just depends when they got in, my parents paid their mortgage off years ago and their endowment produced a nice profit for them above the principle of the mortgage
generally people will have been warned years in advance if their endowment isn't going to work out, also if you bought your house in your 30s back then and had say a typical 20 year mortgage then you're looking at paying it off in your 50s... if something did go wrong then you'll have had an extra 10+ years of slack to sort it out with re-morgaging etc..
obviously with people buying rather later these days it is probably better to be rather more risk averse and not be exposed in such a way
generally people will have been warned years in advance if their endowment isn't going to work out, also if you bought your house in your 30s back then and had say a typical 20 year mortgage then you're looking at paying it off in your 50s... if something did go wrong then you'll have had an extra 10+ years of slack to sort it out with re-morgaging etc..
obviously with people buying rather later these days it is probably better to be rather more risk averse and not be exposed in such a way
Man of Honour
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Same happened to us.
We borrowed £14,000 in 1983 and had an endowment. We were told that after 20 years the endowment would be worth £30,000 so we'd have a windfall of £16,000 plus a house
In 2002 the wife heard rumours, phoned the bank and we were told the endowment would reach about £12,800 so we had a shortfall of £1,200. Obviously in 2002 it was easy for us to save £1,200 over the next year so wasn't a big deal but I suppose it could have been a lot worse.
And no Dowie, we weren't informed
I think. a £1200 shortfall is a bit different... I mean so what? It is later on when people had £XX,XXX or sometimes even £XXX,XXX shortfalls that banks were quite keen to warn people in advance - see for example that Tom Crawford case, he was warned well in advance by the bank and advised to switch to a repayment mortgage, he didn't and through his own stupidity he lost his home.
Soldato
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I think, following PPI, that there are a group of people who have realised that there might be the potential to call out the 'bad banks' over other matters in the hope to eventually persue for comoensation based upon mis selling.
As is the general opinion in this thread, I doubt it will get anywhere, as the banks do not seem to be at fault.
They'll whinge moan and try anyway.
Muppets.
Permabanned
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Doesn't sound as bad as it makes out. The woman has been paying an interest only mortgage for what... 25 years??
So she's been paying pitiful amounts per month.... In London.... With massive economic boom that's probably seen the value of her home more than quadruple.
Just sell the house and move.
So she's been paying pitiful amounts per month.... In London.... With massive economic boom that's probably seen the value of her home more than quadruple.
Just sell the house and move.