During the eighties and nineties many mortgage customers were sold endowment mortgages where they paid interest only and took out a separate policy to pay off the capital at the end of the mortgage term, many of these policies turrned out to be loss making entities.
Alwyn and Wishes
Out of interest did the banks give you your interest only mortgages without first ensuring you had a repayment vehicle in place to pay offf the capital at the end of the term? If not could this not be described as mis selling?
I think in the boom years Mortgage companies doled out interest only mortgages like smarties on the premise that house prices were going to carry on rising over the years and increase in wages etc would ensure that customers would be well able to pay off the capital at the end. It hasn't turned out like that...........
Cashier, in my case I have an annuity home loan.
I am in a very tricky position at the moment, am tied into an endowment mortgage but did not take out a separate policy to pay off the capital at the end of the term.
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