Struggle to clear interest-only mortgages
HUNDREDS of thousands of homeowners are expected to struggle to clear interest-only mortgage deals that end in the next five years.
Research from Kensington Mortgages shows that by January 2024, approximately 250,000 interest-only borrowers will reach the end of their term and be unable to find a new loan. That’s 15% of the 1.7million homeowners who currently have interest-only mortgages.
Many will be nearing retirement, leaving little time to repay debt. But there are lots of new products launching for older borrowers, including lifetime interest-only deals, and people should seek advice on their options now rather than leaving it too late.
Big names including Nationwide, HSBC and the Bath, Leeds and Nottingham Building Societies are a few of those offering products into older age.