Repayment Mortgage Only One Penny A Month

The building society's computer cannot process nil payments so they are paying a nominal one penny a month instead of the £1500 per month they previously paid. It is estimated that about 30,000 are in this position of enjoying what are effectively interest-free loans for a time, though the capital sum borrowed will of course eventually have to be repaid.

The Camerons will have to change to their lender's standard variable rate at the end of the year, so are setting aside the money they have saved in order to put more equity in their home when their mortgage deal comes up for renewal. This is prudent because they may be in negative equity as their house has fallen in value.

Lenders have learned their lessons and below base-rate trackers are unlikely to be offered again for some considerable time.

While the Camerons are relishing their temporary good fortune, in the Reader Comments beneath the article there is a strongly worded complaint of unfairness from a man who is not a homeowner and who pays a high rent for his home. He points out that there are 7 savers for every 1 borrower and accuses the government of stealing his money. He demands an immediate rise in interest rates.

Margaret Wilde www.wildeaboutsteroids.co.uk