interest only morgages and the credit crunch

[Monkeytrousers]

Are these a good idea in the short term

Does it matter if we don't know how long it will take for the economy to take an upturn - 5 - 10 years say?

If we had a full scale recession would you end up paying more anyway?

They are always riskier and should be seen as a short term emergency measure as you are only paying the interest and the capiotal remains Over the term of the mortgage in full they cost a lot more.Also if prices fall you are in trouble and most people i know who have them started out intending to switch to repayment and never did.ATM they are even riskier and are considered sub prime by some lenders in the US.A good idea for developers who were doing quick turnovers in a boom but no one else sadly

cheers noddy