High-risk home loans, once dubbed ticking timebombs by the City watchdog, are back on sale - but this time with a safety net attached.
Clydesdale and Yorkshire banks have launched an interest-only mortgage with a twist: borrowers pay just interest for the first three years, then switch to a typical repayment loan for the remainder of the deal, the Daily Mail reports. This means they will pay off the interest and the capital, and end up owning the property. It is in stark contrast to the estimated 1.3 million borrowers who have taken out a traditional interest-only loan. They have been paying only the interest without making provision to repay the capital - and are running the risk of ending up homeless. In the ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
