Karen Barrett comments on the FCA review into interest only mortgages

02 May 2013

“Today’s FCA’s review offers an important insight into the size and nature of the problem borrowers on interest only mortgages may face when they come to the end of their mortgage deals. The research shows that just under half of all interest only borrowers set to repay their loans by 2020 may be left with a shortfall on their mortgage repayments and of those a third are expected to face a shortfall of £50,000 or more.

“It is absolutely imperative for mortgage holders on interest only deals to act now to assess their individual situation and to ensure they are taking action to tackle any potential shortfall. And it is important to look at all possible options, whether it is switching to a different type of mortgage, saving into an extra repayment vehicle or even down-sizing their property. These are significant decisions to make and we would encourage all mortgage holders to seek professional advice to ensure they are aware of their options and that they have them explained to them in detail, to be able to make the right decision for their individual needs. A whole of market financial adviser will be able to look at a borrower’s entire financial situation and they will be able to recommend the most suitable plan of action to ensure the mortgage demands are met. To find a whole of market financial or mortgage adviser go to www.unbiased.co.uk.


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Category: Homes & Property Tagged: mortgages

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