Thursday, 25 October 2012

Misery over mortgages that can't be paid back: FSA report reveals interest-only deals have turned into a £100billion 'time bomb' | Mail Online

Misery over mortgages that can't be paid back: FSA report reveals interest-only deals have turned into a £100billion 'time bomb' | Mail Online

Millions of families who took out interest-only mortgages during the boom years may never be able to repay them, a damning report warns today.

A ground-breaking investigation by the financial regulator into Britain’s home loan market reveals that these deals have turned into a £100billion ‘ticking time bomb’.

An interest-only loan is cheaper because it allows people to pay back only the interest on the loan. In theory, the homeowner saves up separately to pay off the original amount when the loan term ends.


No comments:

Post a Comment