Religion and Ethics Forum

General Category => Politics & Current Affairs => Topic started by: Nearly Sane on August 15, 2023, 01:51:44 PM

Title: Interest-only mortgages: Warning against over-optimism in clearing debts
Post by: Nearly Sane on August 15, 2023, 01:51:44 PM

I have a strange sense of deja vu


https://www.bbc.co.uk/news/business-66510157

Title: Re: Interest-only mortgages: Warning against over-optimism in clearing debts
Post by: Harrowby Hall on August 16, 2023, 11:50:06 AM

Interest only mortgages were popular about fifty years ago but they were usually sold in tandem with with-profits life assurance policies. They lost their shine when the bonus provided by the policies began to drop dramatically.

In my case, the death of my wife when there was still ten years left on the mortgage resulted in settlement of the mortgage and an accumulated bonus payment of over £20,000. I doubt such outcomes are possible today.