BBC breakfast news lead story this morning is that interest only mortgages only mean you are paying the interest.
Rob McGregor, 42, from Reading, pays more than £900 a month and will still have £188,000 to pay off at the end of the mortgage term in 18 years.He already needed to make repayments on other loans and said that an interest-only mortgage seemed like the best option."I needed a mortgage that I could pay less into each month. But now I regret choosing interest-only," he said."It can be quite upsetting."He said it was a struggle to make ends meet. The financial pressure means he has to look for deals in supermarkets, and he is finding it difficult to set money aside in savings.
The financial pressure means he has to look for deals in supermarkets
This is really annoying me - suggesting people should be compensated for the fact they didn't realise that with an interest only mortgage you do still have to pay back the principal amount at some point.Do people really think the loan amount was a free gift and didn't need paying back?
I don't think there's much of a push for miss-selling cases on IO mortgages yet though is there?