A recent TV, documentary highlighted a man who was experiencing difficulties paying PS800 per month on an interest only mortgage
, on a property of PS130,000.
A report by Bristol University and the International Longevity Centre (ILC-UK) found that about two-fifths (40%) of people aged 75 and over who still have a mortgage to pay off have an interest only mortgage
with no linked investment with which to pay the loan back.
Worryingly some owners who have an interest only mortgage
do not even have a relevant investment in place to enable them to pay of the capital balance outstanding.
The Financial Conduct Authority (FCA) estimates 55% of Wales' 103,000 interest only mortgage
holders will have a shortfall of PS50,000 or more between what their current repayment plan will pay back and what the mortgage is worth.
An interest only mortgage
can appear to be a tempting way of buying a property.
SL Green completed a refinancing of the first mortgage loan on 485 Lex with a 10-year interest only mortgage
with effective interest rate of 5.566%.
But Louise Cuming, of moneysupermarket.com, says people should still think carefully before taking out an interest only mortgage
QMY existing interest only mortgage
runs until 2014 when I shall be retired.
This is becoming a more common problem and those customers who are coming close to retirement age with an interest only mortgage
may not be granted an extension to their home loan.
interest only mortgage
, do not have a repayment vehicle in place with which to repay their mortgage.
Q:MY sister has an interest only mortgage
of pounds 19,000.
Four out of 10 people with an interest only mortgage
that is not backed by an investment said they could not afford to set any money aside towards repaying their loan.