UK's interest only mortgage problem.
Interest only mortgage deals have been described as a 'ticking time bomb' by the chief executive of the Financial Conduct Authority, who has said that the problem was created over the course of the last 20 years.
The Council of Mortgage Lenders quickly responded to this advising that the problem has been greatly exaggerated. The CML advise their figures suggest between 143,000 and 158,000 interest only deals will mature per year between 2012 and the end of 2019
The loosening of interest only criteria began in the early 1990s, when mortgage provider Cheltenham & Gloucester announced that it no longer required evidence of a mortgage repayment vehicle, others soon followed suit.
Tightened mortgage lending criteria now requires annual reminders to be sent to interest only mortgage holders. However the UK mortgage industry presently has no idea as to how such mortgages will be repaid.
Interest only mortgage holders are advised to contact Deal Direct today for impartial remortgage advice.
We will search for a competitive remortgage product on your behalf. We are committed to helping mortgage holders move to a more affordable deal.
For those who find themselves stuck with their interest only mortgage, we urge mortgage providers to develop schemes to help those without a repayment vehicle remain in their home at the end of their mortgage term.
Contact Deal Direct and we will search through every available mortgage to find the right deal for you.
