The news that 250,000 interest-only loans cannot be repaid is not as simple as it appears (Interest-only mortgage warning: 1.3 million homeowners risking retirement dream, 2 May). There is a growing body of evidence that interest-only mortgages were sold to people who would have been quite capable of discharging a repayment mortgage. There is also an emerging pattern that such sales involved people with limited command of English who were unaware of the different types of mortgage.
A further concern is that some people have had mortgage statements that show repayments were supported by an endowment (with a given value), only to be told at the end of the term that the endowment was “not assigned” to the lender so that the funds cannot be claimed.
This is beginning to look less like a case of widespread fecklessness and more like another case of mis-selling on a grand scale.
Hood Associates, Bradford