In a radical move, mortgage lender Kent Reliance Building Society has launched what is being dubbed as the "never-ending mortgage".
The mortgage - the first of its kind in the UK - works on a interest-only basis and allows the borrower to never pay back the original loan if they so choose, passing the mortgage on through their estate instead. Mike Lazenby, chief executive at Kent Reliance, says the building society has already sold three mortgages this morning having announced yesterday the lender had decided to take the step to offer mortgages in perpetuity. He claims although interest-only mortgages are not a new concept, the idea of never paying back the original loan and passing on the debt through the borrower’...
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