changing from a teaser rate to an SVR is entirely different to the mortgage reaching maturity.
One is a continuation during a term, and the other is the repayment deadline.
Indeed, it wouldnt surprise me that a "means of settlement via an approved vehicle" clause was not in every IO mortgage ever issued.
not having one is a serious breach of contract....IMHO.
People in the 80s had endowment policies which were meant to earn enough to be able to repay the mortgage at the end of the term with a bit left over! Easy to say in hindsight too good to be true. What's scary is that when the endowment policy falls shortm, as so many have, the homeowner is left with having to somehow raise the money to meet the shortfall, even though it was the bank who sold them the policy, and possibly dudn't sufficiently explain the consequences for the borrower if the expected apreciation of the endowment policy failed to materialise. Offsetting that though is that often these mortgages have run for 20 to 30 years, so the amount that has to be found to pay off the mortgage, always assuming the homeowner is now too old to remortgage, is usually less than £100k. Surely someone in their 50s could raise a £100k mortgage on, say, a £400k house?