The Dangers of Interest Only Mortgages
As if the endowment selling scandal was not enough for the British housing market and financial system to bear, it seems that we may be heading for another mi-selling scandal of equal proportions.
The FT has published a good article covering the concerns about the latest financial product to be foisted on the unwary first time home buyes, namely interest only mortgages.
"First time buyers and cash strapped home owners are scrambling to take out interest only mortgages that could leave them facing financial ruin or forced to trade down the property ladder to pay off their mortgage.
Mortgage lenders' willingness to market interest only home loans has prompted fears that these mortgages could be the cause of the next misselling scandal."
Read the full article here FT.