[Britwrench]

My brother, in the jolly old UK is going to be hit by this soon, he has a ARM and in June the rate goes up. He still believes that because his house value has increased that he is better off...... not much I can do.

My own story is I lived in the middle east for 5 years and came back to the UK for a holiday, saw with my now ex-wife a condo we could buy. Mortgage agent asked me my income.... "in the UK nothing"..."no, problem"
An ARM was signed by me that day, we came back and stayed in the place 8 months or so, saw the increasing payments, sold (for a profit) and now with two incomes in the UK got a better rate on the next condo. After that, of course, it went downhill till the eventual divorce.