Wow a 15 year mortgage. How far we have come
Do you know theres a number of things wrong here aside from Hobbit Eddie fella and his appetite for publicity. On the one hand you have a bank selling a product for which insurance companies have been fined tens of millions in retrospect in the UK but we dont do retrospect as we seem to have a “not caught no sin” law in this dump thats one thing.
The other is that the people involved did not seek independent advice on investing in a product like this but took the banks “word” on it or maybe knowing our regulators of the past they didnt know where to go to get advice which could equally be true.
Jaysus this place is a shambles.
He was 53 when he took it out, you’d have been hard pressed to get a longer term than that even when banks were extending terms to 30 or 40 years for younger people
Yup, lots of problems with endowment mortgages.
From a bank risk management perspective, at least back then Interest Only mortgages came with repayment vehicles attached. I.E. the Endowment mortgage payment was an IO mortgage payment and a payment into an investment fund. Yes, this was risky, but during the boom IO mortgages were offered without any certainty of how the principal would be repaid.
In the early days some endowment mortgages were cast iron guaranteed to pay off the principle
Some people did very well out of some of the early products.
Yeah especially those selling them in banks and assurance companies.