Hundreds of thousands of interest-only mortgage borrowers whose deals mature before 2020 are likely to face a funding shortfall, according to estimates produced for the Financial Conduct Authority (FCA).
As their mortgage terms end relatively soon, the FCA said lenders have agreed to contact "at risk" borrowers to implore them to check their plans for repayment and consider the options available to them. It follows research, commissioned by the FCA, into consumers' ability to repay their interest-only mortgages when they mature. The two studies - one by credit referencing agency Experian, the other by market researchers GfK NOP - suggest that, while many borrowers have a repayment strategy in place, many homeowners need to take control of their mortgage repayment planning. Martin W...
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