FredBloggs
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My sister in law was alarmed by the above story which appeared in the Business Post last Sunday. She has an interest only mortgage taken out in 2006 and basically she is hard pressed to meet it. She is very worried that the bank will ask her to start repaying capital and she will not be able to afford the repayments.
I told her my understanding of interest only mortgages was that the interest only period was for a few years at the beginning of the mortgage after which you'd have to start repaying the capital. This alarmed her even more. I suggested she contact her building society to see what the terms of her mortgage are but she is reluctant to do so in case she brings trouble on herself (which is pretty stupid I know).
Is my understanding of interest only mortgages correct? what is the normal interest only period? At review could she be kept at interest only if she looked for it? And why did the lending institutions give interest only mortgages to people like her who patently couldn't afford the capital element?
My sister in law was alarmed by the above story which appeared in the Business Post last Sunday. She has an interest only mortgage taken out in 2006 and basically she is hard pressed to meet it. She is very worried that the bank will ask her to start repaying capital and she will not be able to afford the repayments.
I told her my understanding of interest only mortgages was that the interest only period was for a few years at the beginning of the mortgage after which you'd have to start repaying the capital. This alarmed her even more. I suggested she contact her building society to see what the terms of her mortgage are but she is reluctant to do so in case she brings trouble on herself (which is pretty stupid I know).
Is my understanding of interest only mortgages correct? what is the normal interest only period? At review could she be kept at interest only if she looked for it? And why did the lending institutions give interest only mortgages to people like her who patently couldn't afford the capital element?