Author Topic: Interest-only mortgages: Warning against over-optimism in clearing debts  (Read 200 times)

Nearly Sane

  • Administrator
  • Hero Member
  • *****
  • Posts: 63732

Harrowby Hall

  • Hero Member
  • *****
  • Posts: 5037
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.
Does Magna Carta mean nothing to you? Did she die in vain?