I1L2T3 Posted February 15, 2012 Share Posted February 15, 2012 They used to do that, I don't think they do it now. I know somebody who had an endowment style mortgage, at the end of the mortgage, the endowment policy left them with a six grand shortfall. They used to do it. Starting again: I/O mortgage repayment vehicles - LLoyds Following a decision by Santander (Madrid: SAN.MC - news) to insist on a 50pc deposit from interest-only borrowers , Lloyds has specified which assets it will accept as "repayment vehicles" to pay off the loan at the end of the term. Cash savings will no longer be acceptable as a mortgage repayment vehicle, while the bank wants a 20pc margin of safety in the valuation of other assets such as shares, Isas and other property. It also demands that repayment vehicle assets have a minimum value of £50,000. The bank said that for stocks and shares Isas, unit trusts, investment bonds and shares, "the current fund value must be over £50,000 and up to 80pc of the current fund value can be used". GREAT NEWS! Link to comment Share on other sites More sharing options...
Conrod Posted February 16, 2012 Share Posted February 16, 2012 It is similar, but there are differences. You would be liable for repairs etc. rather than the landlord. There is also the creation of money by the bank in the form of debt to usurp ownership of the property in the first place. Which in turn drives up inflation (the cost of living). Interest on the debt forms the slavery. Should loans be interest-free? Who can afford to run a bank or building society on that basis? Or should everything in life be free? (for those who aren't willing to work and pay their way through life). Link to comment Share on other sites More sharing options...
chem1st Posted March 28, 2012 Author Share Posted March 28, 2012 They used to do that, I don't think they do it now. I know somebody who had an endowment style mortgage, at the end of the mortgage, the endowment policy left them with a six grand shortfall. Seems like a lot of people are about to have this problem. Up to 360,000 families may be forced to sell their home this year because record numbers of endowment policies have failed to deliver. In many cases, these homeowners are seeing endowments fall £100,000 short of what they were promised. Many who have saved loyally for 25 years will get a payout of little more than £25,000 — far short of the capital they owe on their home. With banks and building societies increasingly reluctant to lend to those approaching retirement, many will be forced to sell their homes or dip into savings to clear their mortgage debts. These homeowners will have seen their properties increase in value by up to 250 per cent since they bought them. But tapping in to their equity means leaving the family home, and often moving to a different area. Up to two million may end up in the same situation over the next five years. Read more: http://www.dailymail.co.uk/money/news/article-2121250/Up-360-000-families-forced-sell-homes-year-endowment-policies-fail-deliver.html#ixzz1qP5LRho3 Link to comment Share on other sites More sharing options...
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