Interest-only mortgage bomb time is predicted to explode by 2020.
In around a decade many interest-only mortgage-holders are expected to have a bomb blow up in their face.
Tens of thousands of interest-only mortgage holders took out a deal but failed to put in place a repayment strategy to repay the capital owed at the end of their mortgage term.
The value of mortgages due to mature in the next decade with no repayment plan is £116 billion. Those home-owners who reach the end of their mortgage term without the means to repay their lender, could well be forced to sell unless they can rapidly come up with a sufficient funds to clear the debt.
Those in this position are advised to call Deal Direct to discuss their options with a skilled adviser. We will work hard on your behalf to find you an alternative product to switch to.
The many currently maturing mortgages with no repayment plan in place will be a problem for both borrowers and lenders alike.
Last December the problem of interest-only mortgage repayment was highlighted by the Mortgage Market Review. This led many lenders to tighten their criteria which has left some home-owners struggling to remortgage which has created a further problem.
If you have an interest-only mortgage with around 10 years left to run, you could benefit by switching to a repayment mortgage. Lenders have cut rates over summer and now competitive remortgages are on offer. The deal you can achieve depends on your deposit level, however a review of the market could mean you could find an affordable product to switch to.
To avoid an interest-only mortgage explosion
call Deal Direct.
