Thursday, March 26, 2009

Couple pay 1 penny a month for mortgage

amidst all the doom and gloom, investment woes, personal loan repayment hell, unemployment figures and ads for debt consolidation I noticed this :

Couple pay 1 penny a month for mortgage. That really is impressive, apparently they are on an interest only tracker mortgage which is pegged on 1% below the base rate. It's gone down from £1500.

Their mortgage with Cheltenham & Gloucester tied their payments to 1.01 per cent below the base rate, which then stood at 5.5 per cent.

Since then it has fallen to 0.5 per cent, cutting their monthly bill from around £1,500 to zero.

But the couple from Hampton, south west London are being charged 1p because their building society's computers cannot deal with payments of nothing.

I mean I know they aren't actually paying off any of the equity but it's still an interesting sign of the times.

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