Each week, we round-up the best comments, emails and letters to the site and pick one reader contribution as our Star Letter. This week’s award goes to:
Third of interest-only borrower shortfalls could top £50,000 – FCA
Finally, lenders will be telling customers their stance on interest only mortgages which cannot be repaid at maturity.
The uncertainty is causing possibly more concern than the fact that there might be a shortfall. Will they repossess? (some will). Will they convert to a capital and interest basis over a painfully short term? (some do). Will they extend the interest only period for a few more years? (yet to see this happen).
At least with some clarity advisers can better help their clients to prepare for the eventuality and not jump into knee-jerk solutions that actually don’t help the clients much at all.
Andy Wilson
