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frankenbike-
This. He's overextended on a fat pad somewhere on the never never and now the bank are forcing a change to repayment.
Gutted for the guy.
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Good point. I hadn't thought of this, mainly because my brain denies the idea of interest-only mortgages!
Someone who doesn't do a basic sensitivity analysis on the affordability of their mortgage probably shouldn't be in government in any event.
Soul
t-v
Take a real example. Monthly repayments on a mortgage of £225,562, with a 25-year term, and an interest rate of 0.5% are £800.
To increase repayments to £2,000 per month, the interest rate would need to increase to 9.69%.
In other words, this didn't happen.