Mortgage regulator warns interest-only borrowers to act now

Aaron Strutt Image
More than a million homeowners with interest-only mortgages have been warned to start paying them off by the Financial Conduct Authority. Approximately 2.6 million UK households have an interest-only mortgage and the average shortfall at the end of the term is expected to be £71,000. Aaron Strutt, a broker at Trinity Financial, says: “In an effort to get more people to pay off their interest-only mortgages, the banks and buildings societies will be stepping up communications to ensure repayment vehicles are sufficient. “Borrowers can use their overpayment facility to repay lump sums off of their mortgage or switch to capital repayment, although they need to be aware that they are unlikely to be able to swap back to interest-only any time soon.” May 3, 2013
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