Over the next 30 years 2.6 million interest only mortgages due for repayment.
• Approx. 48% of all interest only borrowers are likely to have an average shortfall of £71,000.
• Lenders stepping up warnings to prevent payment shocks.
On 2 May 2013, a BBC article commenting on the recent FCA report stated that over one million people will face a financial crunch when they have to pay off their interest-only mortgages, with an average shortfall of £71,000.
Lenders will now be stepping up warnings to homeowners to prevent payment shocks.
“My advice to borrowers is not to bury their head in the sand. This report is a call to action.” Martin Wheatley, Chief Executive of the FCA.
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