Interest Only Mortgages

[Cornwall Sceptic]

I was talking to a friend earlier this week who complained her IO mortgage had gone up nearly £300 in the last 3 months

She has no reason to exaggerate to me - her words were I can't afford the payments they've gone up from £700 to nearly £1000

Have the lenders started putting the rates up to such an extent?

Is there anyone out there who knows similar?

CS

PS my advice was that she switch to a fixed rate ASAP for as long as possible

[delboypass]

doesnt sound right - sounds like her IO morgage has jump 2% which is unlikely unless she has just completed the trial period (first couple of years or something)

Find out how much she was paying, which bank/building society, and what interest she was on and is on now for comparison.

Although i wouldnt expect a women to know these details! (like all other financial matters!)

[Surrey cash buyer]

Sounds like she came to the end of a fixed rate deal and moved on to the SVR, the standard variable rate, the rate that you get if you overlook to negotiate anything else.

[Cornwall Sceptic]

doesnt sound right - sounds like her IO morgage has jump 2% which is unlikely unless she has just completed the trial period (first couple of years or something)

Find out how much she was paying, which bank/building society, and what interest she was on and is on now for comparison.

Although i wouldnt expect a women to know these details! (like all other financial matters!)

Sounds like she came to the end of a fixed rate deal and moved on to the SVR, the standard variable rate, the rate that you get if you overlook to negotiate anything else.

Your probably right guys it's about 2 years since she bought - I did ask her about that but she claims it wasn't discounted - I credited her with more intelligence

CS

[laurejon]

The next shocker for her will be that she took a 2 year discounted rate at 2% and is locked in on SVR for five years, now that would be bad.

[libitina]

Although i wouldnt expect a women to know these details! (like all other financial matters!)

Don't tar us all with the same brush

[laurejon]

Dont be fooled.

Women have a much better grip on finance (amongst other things) than we give them credit for.

Wait for divorce time, and you will see just how financial Savvy they really are. Off with the mask of ignorance, on with the auditors mask of cold blooded robbery.

[Cornwall Sceptic]

The next shocker for her will be that she took a 2 year discounted rate at 2% and is locked in on SVR for five years, now that would be bad.

Indeed it would - conversation came about when she said her father had recommended she get a fixed rate mortgage and she asked what I thought - I agreed with her dad - anyone who is at the max and who doesn't intend to sell would be wise to fix rates for as long as possible (IMHO)

I wasn't involved in advising her to get an IO mortage (and was quite shocked when I found out she had) I thought only the foolish and desperate would countenance such a method of house purchase - she has a good job and is paying off lumps of capital

I would be surprised if she had tied herself into a deal as bad as the one you highlighted - but then again people do the strangest things

CS

[Buffer Bear]

Don't tar us all with the same brush

Exactly! I am the boss of the finances in this house and it is me who is blocking jumping on the ladder / down escalator or what other metaphor you care to use.

Wait for divorce time, and you will see just how financial Savvy they really are. Off with the mask of ignorance, on with the auditors mask of cold blooded robbery.

True in my case. I know all his account details, passwords etc. He isn't bothered about mine. Just aswell I am a nice person and would definitely not take him to the cleaners. Let's see what Heather McCartney does. If she asks / takes more than 10 million, I will be disappointed especially as they have not been together for very long. PM is a fool if he hasn't ringfenced his assets.