Interest-only mortgage holders at risk of losing their homes.
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.
You May Also Enjoy
What does latent defects insurance cover?
Breaking Property News – 24/04/24
An average rate of 6% for the first time since November – Rightmove’s weekly mortgage tracker
Understanding Property Valuation: A Simple Guide
Aberdeen is cheapest city to be a first-time buyer