The interest-only mortgage time bomb…Term Ending

These are worrying times for homeowners who’s mortgages coming to an end. Will you struggle to repay the debt at the end of the loan and face an unknown future.

Mortgage term ending is the “ticking time bomb” and the months are now counting down for some homeowners with interest-only mortgages. Interest-only mortgages are now posing a big problem for homeowners across the UK and Northern Ireland particularly if you are in NEGATIVE Equity. We have been contacted by very worried borrowers who have this type of loan and are struggling to cope financially. Many are in a situation where they have a large debt have no chance of paying it back at the end of the mortgage term. People may be forced to sell their home and move into rented accommodation.

The Council of Mortgage Lenders (CML), state that 4 in 10 (40%) mortgages approved in 2007 were taken out on an interest-only basis. Now the reality is that many people are reaching the end of their mortgage term and are unable to repay the loan.

Interest-only mortgages are expected to mature in three peaks. The first is occurring between now and 2020. These loans were typically sold alongside endowment mortgages in the 1990s and early 2000s, and many have not performed to expectations. You have the least time to fix your finances and come to an arrangement.

The next borrowers have loans maturing in the mid-2020s. Experian says that many of these borrowers are less affluent and have borrowed many times their salaries.

The final peak will come in the early 2030s when those who took out an interest-only mortgage in the lead-up to the financial crisis will see their loans mature.

Don’t get caught up in a financial mess - ACT NOW.