Tuesday, March 26, 2013

Help for Home anyone !

Nearly 4m homes 'at risk' as interest-only mortgage borrowers face payment demands they can't meet

Nearly four million homeowners could be facing a nightmare scenario similar to the collapse of the mortgage endowment market and negative equity trap of the 1990s as the capital on their interest-only mortgages become due for repayment.

Posted by happy mondays @ 07:55 AM (2236 views)
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5 thoughts on “Help for Home anyone !

  • i remember the 90`s says:

    Well this has been in the public eye for years ,my Mum and Dad who were 73 and 68 by the time they paid their interest only mortgage had to take early action by going without luxuries and saving up their shortfall as the person who sold their endowment was acting as a one man band and had died a few years after selling it,so the head in the sand mentality is no excuse imo.

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  • but:
    “More mortgages were repaid than taken out in February, in a worrying sign for the government which is trying to kickstart the moribund housing market”, says the Guardian.

    http://www.guardian.co.uk/money/2013/mar/25/mortgage-lending-stalls-six-months-bba

    It goes on: “The BBA said £7.8bn of home loans were granted during the month, but low interest rates have allowed borrowers to make high capital repayments. When these are taken into account, net lending by banks FELL by £982m over the month”.

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  • Ah, more opportunity for Miss Selling (lovely girl).

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  • I have often posted comments when a topic is opened concerning interest only mortgages – and endownment mortgages. My first mortgage was an endownment mortgage, which at the time (late 1987) was the only way I could afford payments on my first home. I have subsequently moved home 3 times (4 times if you included 6 years I have rented)… and latestly had changed to a repayment mortgage and kept my with life policies on a life cover, and a mobid hope I would get some kind of money back. very recently my endownments have started to mature, and btween Jan and July they pay out. So far I would have had 50% less in return than I would have needed to pay off my orginal mortgage and additional equity release (home improvement work). I am lucky that I do not have to cover the shortfall to pay off the original capital amount. The projections shown to me way back at the beginning that I would not only pay off the balance, but would likely receive a lump sum have proved a lie… although I have pursued the ‘indepedent financial advisor’ and Standard Life I have had not satisfaction fo rtheir total mismanagement of my policies. I would have been better putting my monthly premiums in a box under the bed – and would have do better with my fund than these so called fund managers! Standard Life are a fraudulent load of schisters. Endownment policies are a greater fraud and mis-selling issue than PPI… and Standard Life should be forced to reimberse all policy holders to at least the value of the mortgage capital that they were taken out to cover!

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  • Another taxpayer funded bail-out on the way

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