One in 10 over-55s UK homeowners are still paying interest-only mortgages and while the majority are confident of clearing the debt substantial numbers fear they will not be able to.
The study by over-60s property experts Homewise shows that the average amount owed by 1.4m or so over-55s with interest-only mortgages is around £91,000 with one in seven owing more than £150,000. But 17% of interest-only borrowers aged 55-plus – equivalent to 24,300 – admit that they will be unable to clear the debt.
The Council of Mortgage Lenders estimates that at end of last year, there was around 1.7m pure interest-only mortgages outstanding, down from around 3.2m in 2012, with another 500,000 part repayment and part interest-only loans, reflecting the fact that the Financial Conduct Authority has campaigned in recent years to help borrowers focus on repaying loans.
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