I bought my first house in 1979 and at that time ALL my friends were taking out the "new contemporary" endowment mortgage. The biggest thing since sliced bread and I took out a repayment mortgage.
They had been sold the lie, "everything will be all right in the future // your on a win-win situation".
I did not go against the grain to be belligerent or a rebel and I did not have the foresight to know what is happening today, however most if not all of my family had advised me that only paying interest was a) like renting & b) none of us can see into the future and what it will hold. 25 years is a long time and financial change is almost inevitable. Paying off as you go is the more prudent way.
I could sit back now and smile at my contemporaries, however, some of the stories I am hearing are truly horrific. People who have been paying as little as £100 a month for years without extra saving could now be facing bills of thousands of pounds, maybe tens or even hundreds of thousands of pounds.
So what do mortgage companies do now? Oh well never mind, we’ll just let you live on regardless, or you cannot pay so get out. It appears that repossessions’ could go through the roof as early as 2015. That should give the coalition something to think about, as they try to get voters to register their mark while wondering where they will sleep tomorrow…