There's no doubt it's coming. We've already been dealing with a steady stream of end of term interest -only accounts for our lender clients. What happens when people who have conducted their account perfectly well can't pay? What if their house isn't worth what they are expecting at the end of term because of an original overvaluation? How can lenders help?
Nearly a million homeowners have no way of paying off their mortgages because they opted for interest-only loans, according to Citizens Advice. The new figure is much higher than previous estimates from lenders and from the City watchdog, the Financial Conduct Authority (FCA). Citizens Advice said 934,000 owners did not have a plan for how to pay back the money at the end of the mortgage term.