The Team

People with interest only mortgages urged to speak to their lender
30/01/2018
People with interest only mortgages urged to speak to their lender
The Financial Conduct Authority is urging People with interest only mortgages to speak to their lender.  The FCA has determined that nearly a fifth of mortgages are interest only mortgages. When you have an interest only mortgage it means that during the lifetime of the mortgage you only pay interest on the loan. That means that the amount you borrowed remains outstanding and it must be repaid when the mortgage comes to an end. At some time in the past, these types of mortgages were supported by another financial product - perhaps an endowment or pension policy, but  these are now rare, especially following  the collapse of bonuses accruing on endowment policies meaning many borrowers faced a shortfall.

The FCA has encouraged lenders to contact borrowers who have interest only mortgages but has found engagement rates low.

It has now published a leaflet on the options available to people with interest only mortgages. You can read and download that leaflet by clicking here. You can read more about the FCA's position on it's website. You can access that by clicking here.