Interest only is OK provided you have a GUARANTEED way to pay it off when due. Most people don't which is where the problems lie.

The current situation is - in many ways - long overdue in coming. Endowments screwed up my generation and now we've got the second recession in a matter of twenty years that could wipe literally billions off the face of the economy. Labour has managed to spend everything that we had, so the UK (along with the US) is effectively bankrupt.

If the political liars were serious about actually doing something to help, they'd take 20p off the fuel taxes now and avoid 90% of the looming problems, but greed overcomes sensibility and we're all paying for Gordon's stupidity and fiscal mismanagement.

SHARK!

With costs soaring borrowers have been turning to interest-only mortgages to reduce their monthly outgoings. However, now lenders are becoming much more nervous about the risks associated with these deals making them harder to come by. John Myers, head of mortgages, analyses the problems, looks at the current best deals and suggests we are - at last - seeing some signs of improvement in the mortgage market...

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