Tuesday, April 10, 2012

Millions trapped in relationships with abusive mortgages

The interest-only mortgage timebomb: Hundreds of thousands struggle to pay their debts prompting fears for the health of the property market

Janice, 38, of Camberwell recounted her harrowing experience: "When I first settled down with my mortgage, it promised to help me up the housing ladder and to leave me plenty of money left over for buying food and paying the heating bills. But it's changed and we seem to have drifted apart. It comes home late, it takes nearly all my wages and it keep taking phone calls in the other room. It's just not the same any more, I really want things to go back to how they were but it's not interested, it just wants more every month."

Posted by mark wadsworth @ 04:02 PM (1801 views)
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5 thoughts on “Millions trapped in relationships with abusive mortgages

  • “An interest-only mortgage offers a cheaper way to purchase a property than with a capital repayment mortgage, because borrowers are only paying off only the interest and not the capital.”
    In what sort of f***ed up world does the definition of “purchase a property” not include the need to pay off the capital.

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  • The Mail and The Express now seem to be serving up a few of these stories (bit of a re-hash of old news) – how much more of this heresy will their readers be able to stomach?

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  • Excellent article summary, Mark 🙂

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  • Some of the statements in this article beggar belief.

    “Hundreds of thousands of homeowners on interest-only mortgages are struggling to pay off their debts – prompting fears for the health of the property market.”

    “An estimated 300,000 people with the loans have missed one or more of their repayments.”

    If they’re struggling on interest only, how could they afford to pay into an ISA or some other means of repaying the capital? Why the hell have they got these loans? The ar*eholes who lent the money are as brainless as the borrowers.

    “An interest-only mortgage offers a cheaper way to purchase a property than with a capital repayment mortgage, because borrowers are only paying off only the interest and not the capital.”

    Probably most of the sheeple who have taken out an interest only loan are so financially illiterate that they don’t understand that the capital has to be repaid at the end of the mortgage.

    “If interest rates were to soar suddenly or the economy was to go into recession, these people will face difficulties meeting their repayments.”

    “This would suggest up to 314,000 people on interest-only mortgages are struggling to keep up with their repayments.”

    The financial t*ssers shouldn’t have lent them the f**king money then, should they?

    Unbelievable!

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  • mark wadsworth says:

    D, thanks.

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