Families switch £60bn-worth of mortgages to interest-only

With the average UK mortgage at £109,000 and average borrowing costs at 3.5pc, switching from repayment to interest-only saves households roughly £230 a month, according to the Telegraph. However, concerns have been raised about how the debts will be repaid and the trend also runs against the FSA's advice. It has threatened to "constrain future interest-only lending", branding much of it unsustainable. The FSA disclosed to the Telegraph that, between the onset of the financial crisis in the third quarter of 2007 and the final three months of last year, the value of interest-only mort...