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  • #1

    Interest-only customers warned against claims management companies

    Interest-only customers warned against claims management companies

    This is a duplicate of the Blog Entry made on 3rd May 2013 08:45.

    Mortgage industry braced as claims management firms raise prospect of mis-sold interest-only mortgages. Homeowners who have interest-only mortgages...

    Click to Read More...
    .I'm the allaboutFORUMS News Feed. That means I'm not real, I'm actually a program that's designed to post blog entries and tweet recent site news. Please don't try and message me, I can't respond! Thanks.
    Tags: banks, bbc, benefits, capital, claim, claims, claims management, cold, companies, con, customers, debt, debts, failed, fee, financial, firms, homeowners, interest, loan, management, media, mis-sold, money, mortgage, mortgages, national, pay, policies, policy, prices, rent, size, tax, world
  • #2
    Re: Interest-only customers warned against claims management companies

    "estimated that as much as £116billion will be owed to lenders over the next eight years by borrowers that have no means to repay their mortgage"

    Christ, that is a lot
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    • #3
      Re: Interest-only customers warned against claims management companies

      Its how typical bubbles work.

      Back then everybody thought they were on a sure fire winner and house prices were just going to go up.

      Rational thinking this is your home got swept away with the greed of following the money. Then it became the case affordibilty of a home outstripped what many could afford and hence the temptation to take any method to get onto what the jones's said was the right thing.

      Suspect in time some of our debts on here are going to look like pocket change when this unravels.

      Only needs a proper price crash one instigated by the buy to let boys getting cold feet and the mortgage market still being frozen.

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      • #4
        Re: Interest-only customers warned against claims management companies

        Is it possible that the majority of lenders will repossess? They will be more interested in the income from the interest.

        I may be wrong, but I cannot see the problem is so great. The majority of people that will be unable to pay off the loan, will ask for an extension and remain in their house. The issues will arise when the people cannot pay their mortage interest any more e.g. redundant, retired, ill, hike in interest rates.

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        • #5
          Re: Interest-only customers warned against claims management companies

          Originally posted by missy View Post
          "estimated that as much as £116billion will be owed to lenders over the next eight years by borrowers that have no means to repay their mortgage"

          Christ, that is a lot
          Which is only 10% of all interest-only mortgages. The other 90% all have a repayment vehicle in place Most of that 10% will be Buy-To-Let mortgages where it's a sensible thing to do. A Landlord can offset the interest on a loan against rent for tax purposes but not any capital paid back each month. A repayment mortgage only increases the equity (capital) in the property which is subject to CGT when sold.

          I see this as a scare story being put out by the self-interested banks in the hope that frightened borrowers will start to repay the capital on their mortgages which only benefits the banks and not the homeowner.

          If you're in negative equity when you sell your property then the lender doesn't get its money back. Good, because they were happy to sell you the product to grab your business in the first place. If you've struggled for years in order to pay back capital as well as interest on your loan then the lender gets to keep all your hard earned money. I know why I chose interest-only

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          • #6
            Re: Interest-only customers warned against claims management companies

            the thing about this has been the absolute crap reporting by all and sundry in the media.

            We are of the generation who were sold interest only mortgages backed by an endowment policy.

            unfortunately most of the endowment policies went tits up quite a few years ago
            ours was shyte although it was sold on the premise that it would pay off the mortgage with enough left over to go a world cruise........................

            most peeps have abandoned the endowments now but that doesn't excuse the financial industry for another great big con and mess

            no one on national TV even mentioned endowments, disgraceful reporting, we'll be paying the mortgage until the day we retire because these endowments failed

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            • #7
              Re: Interest-only customers warned against claims management companies

              Some people can still claim for mis-sold endowment policies.

              I hope you'll be one of them Mrs D

              http://www.bbc.co.uk/news/business-20858236

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              • #8
                Re: Interest-only customers warned against claims management companies

                thanks PlanB

                ditched them a while ago

                too late to claim because the financial industry shut that avenue down pretty quick as well

                we've been well done over

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