Interest only mortgage rates time bomb.
During the last 20 years an interest only mortgage rates time bomb has been created and it may be set to go off.
The Government's Treasury Select Committee has criticised the Financial Services Authority for not helping those interest only mortgage holders in their late fifties, who do not have an adequete repayment vehicle in place to clear the capital owed at the end of their interest only mortgage term.
Treasury Select Committee member Michael Fallon wanted to know why the FSA have been so complacent about the issue.
The FSA responded advising that they agree a mortgage time bomb has been created over the last two decades but they say they are doing all they can to defuse the problem and make sure that it doesn't become any worse.
Mr Fallon has said that while the FSA are updating rules for new mortgage borrowers they are not actually tackling the serious problem of people in their late fifties not being able to clear their mortgage debt.
The FSA advise that they cannot not solve all of the interest only problems created over the last 20 years, however they can make sure that any new interest only mortgages taken out in the future have reasonable repayment measures in place.
If you are looking for interest only mortgage rates of if you are looking to switch from an interest only to repayment mortgage contact Deal Direct now. Our skilled brokers will search the entire mortgages market on your behalf for the best deal currently available.
