Problems ahead for interest only mortgage holders?

Friday 11 September 2015

Citizens Advice: 1 million mortgage holders have no plan on how to repay

On Friday 4 September, Citizens Advice released the findings of a survey that showed nearly a million people could have their homes repossessed because they have no way of paying off their interest-only mortgages. The charity estimated 934,000 people have interest-only mortgages and do not have a plan on how to pay it off when their term ends.

 Other major findings of the survey were:

  •          An estimated 1.7 million have no linked repayment vehicle, such as an endowment or ISA.
  •          934,000 have no plan for repayment.
  •          432,727 have not even thought about how they will repay the capital.