The most read story on BBC News today was the news that almost one million people in the UK will "face difficulties" paying back interest-only mortgages. It has come to light that the position of borrowers with interest-only mortgages was much graver than previously thought, leading Citizens Advice to declare that 934,000 people could face having to sell their homes or even have their homes repossessed when they reach the end of their mortgage terms.
There is growing concern that borrowers have no plan for resolving the remaining debt on their homes when their mortgage term expires. Lenders were all too happy to give out interest-only mortgages until restrictions were tightened up three years ago, but many people were sold these mortgages without fully understanding the consequences of an interest-only mortgage. Now these borrowers are paying the price...
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