A relative of mine asked me to read about interest only mortgages in their early days and I can remember the literature said that an endowment or some similar types of savings plan would have to be set up to repay the capital.
This relative was by no means a finance person and he saw that the capital would be payable separate to the interest but he just wanted to know if I could see any advantage in financing the house this way.
I have now read that a few people are now saying they did not understand the mortgages and are trying to say they should be let off the capital.
Surely anybody with half an ounce of common sense would have realised the capital element of the mortgage would have to be paid at some point.
I have no sympathy for them.
Frank
Good Morning Thursday 18th April 2024