Monday, May 30, 2011
Increase in Interest-Only Mortgages due to bank “forebearance” on struggling home-owners.
Cash-strapped families switch £60bn-worth of mortgages to interest-only
Up to 300,000 cash-strapped households have switched more than £60bn of mortgage debt from repayment into risky interest-only deals over the past three years to help cover their living costs.
Posted by wanderinman @ 11:08 PM (1875 views)
3 thoughts on “Increase in Interest-Only Mortgages due to bank “forebearance” on struggling home-owners.”
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urbanbear says:
Ouch!
I’m amazed that any lender still offers interest only mortgages, given there is a much higher risk of default on the principle and a rising risk of LTV over 100%, which could cost the lender dearly!
dohousescrashinthewoods says:
Interesting that this story has made the front page of the business section today, a day later, and that it was reported on the BBC’s 6.15 business news this morning.
The interviewer noted that interest rates are currently so low that if they moved even a little they could double. The interviewee’s view was that this is likely to happen in autumn.
It sounds to me like there are ugly times ahead. Debate about cuts vs inflation to address the deficit misses the point – we’ll need both in spades and I think the government are “frogboiling” the country into it on both fronts.
enuii says:
Average is therefore over £200K each!