Strug­gle to clear in­ter­est-only mortgages

Gloucestershire Echo - - YOUR MONEY -

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.

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