Will interest-only mortgages be the next mis-selling scandal?

Lenders have started withdrawing their interest-only mortgages from the market. Property expert Henry Pryor reveals whether a mis-selling
scandal may be on the horizon.



Your Comments

My interest only mortgage is the best investment I have made.
I was buying what would be my last house, with a very small pension income, and a large deposit.  with, statistically about 9 years left to live, and a house to be sold on my death for my beneficiaries, I had no interest in repaying any part of my mortgage loan.
So for the very elderly, downsizing in value, if not space,  an interest only mortgage is most appropriate.  It would be very sad if the 'industry' took a decision to ban them all.
 

If you are one of those people who took out an interest only mortgage & didn't think you had to provide for repayment at the end of the loan term, maybe you should not be allowed out of the house on your own in future!!!

I remember the amount of effort I had to put in to obtain an interest-only mortgage.  How anybody can misunderstand the requirement to have funds available to repay the capital either during or at the end of the mortgage term is beyond me.  People who were daft enough to pay for PPI should not be encouraged to cook up some cock and bull story about not understanding what "interest-only" means. 

Agree with the other posts regarding not understanding that the capital had to be repaid and concocting stories relying on ignorance to get compenstaion.  Gets more like america every day god forbid.
What about us lot back in the 70's/80's who prepared for repayment and were led to believe that an endowment policy would not only pay off your mortgage but leave you with a small fortune in excess.  Now that was mis selling big time covered by the usual miniscule warning that investments could go down as well as up! This was usually laughed off by the sales person (who could be an employee of the insurance company selling the endowment working in an area with absolutely no insurance knowledge).  What chance of some long overdue compensation here?

I live in a property that has Negitive equity and want to ge tout of it. I have a morgage of 148,000. Property recently valued at 140-145K on a Interest only Morgage.
I also had the Morgage woth Northern Rock now with NRAM. I am on a fixed rate morgage of over 6% Tryed to re-morgage all want a lump sum.
Any idears much appreciated.