Interest-only mortgage holders at risk of losing their homes.

January 31, 2018

Recent press release from the Financial Conduct Authority (FCA) published 30th January 2018 headlines ‘FCA urges action on interest-only mortgages.’

Home owners with interest-only mortgages are being urged to contact their lenders to discuss their repayment options , the FCA  found that many people have not talked to their lender on this matter.

The City Regulator reveals that nearly one in five mortgage customers have an interest-only home loan, and it is concerned that shortfalls in repayment plans could lead to people losing their homes.

Jonathan Davidson, Executive Director of Supervision – Retail & Authorisations, said:

“Since 2013 good progress has been made in reducing the number of people with interest-only mortgages. However, we are very concerned that a significant number of interest-only customers may not be able to repay the capital at the end of the mortgage and be at risk of losing their homes.”

“We know that many customers remain reluctant to contact their lender to discuss their interest-only mortgage for a variety of reasons.  We are very clear that people should talk to their lender as early as possible as this will give them more options when it comes to the next steps they can take.”

“We are encouraged to see that lenders have taken positive steps to engage with and help their interest-only customers. However, as the number of maturities start to increase towards 2032, it is important that lenders take time to review and, where possible, improve, their own strategies.”

Read the FCA press release 30th January 2018 in full click here.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Homeowners shift mortgage strategy amid economic uncertainty

Middle East conflict prompts Brits to rethink housing plans 27 per cent of homeowners report overpaying on their mortgage to get ahead of potential future interest rate rises 20 per cent of those remortgaging are looking to lock in a new rate as soon as possible in case of future volatility Barclays Mortgage data shows…
Read More →
Breaking News

Today is the day your rights change: New Renters’ Rights rules now in force for tenants across England

Today marks a major change for tenants across England as the first phase of the Renters’ Rights Act 2025 comes into force, significantly strengthening rights and changing how renting works in practice. From today, the long-standing system of Section 21 ‘no-fault’ evictions ends, meaning tenants can no longer be removed without a specific legal reason.…
Read More →
Home and Living

Mould Tops List of Bathroom Red Flags For Homebuyers

Mould, Space & Water Pressure: 3 Bathroom Deal-breakers Affecting House Sales This Spring   Almost 9 in 10 (88%) Brits say at least one bathroom issue would put them off making an offer on a house.   Mould (60%), lack of space (44%), and water pressure (37%) are the top three deal-breakers, with concern intensifying…
Read More →
Home and Living

10 Common Carpet Stains and How to Remove Them

Carpets rarely get dirty in one obvious moment. It’s usually something you don’t notice right away. A bit of coffee in the morning when you’re half awake. Someone walks in with slightly wet shoes. Something small gets dropped during dinner and wiped quickly, but not completely. None of it feels important at the time. Then,…
Read More →
bank of england interest rate
Breaking News

Industry Response to Bank of England Rate Hold

The Bank of England has just announced its decision to hold the base rate at 3.75%. This decision comes as a result of wider economic uncertainty and inflation (CPI) increasing to 3.3% in March and remaining above the Bank’s 2.0% target.   Matt Smith, Rightmove’s mortgage expert “A Bank Rate hold is actually positive news…
Read More →
Letting Agent Talk

England’s non-decent homes could fall by 20%, but it will cost £1.43bn

The latest insight from Inventory Base indicates that the number of non-decent homes in England could be reduced by 20% over the next ten years. However, the sector must recognise that even this modest and achievable reduction would come at a substantial cost of £1.43 billion.   Inventory Base’s analysis of government data shows that,…
Read More →