Lenders are facing a massive £116bn in unpaid interest on interest only mortgages which are due to mature by 2020, according to xit2, a leading asset valuer. Up to 1.3 million interest only mortgages were written at the height of the credit boom, often as a way to get first-time buyers or those with poor credit histories on to the property ladder. However, it is estimated that 1.04 million of these mortgages do not have a final repayment plan in place, meaning the borrower will come to the end of their mortgage term still owing the full capital sum. This could create a major headache for borrowers and banks alike. – www.independent.co.uk/money


Comments are closed.