A recent report from the government’s Department for Work and Pensions (DWP) “The Support for Mortgage Interest” has discovered that 20% of low income interest only borrowers do not understand that they are required to repay the capital balance at the end of their mortgage term or risk losing their home. The reported focused on lending into retirement in cases of low income interest only borrowers.
When the Mortgage Market Review (MMR) came into force in April 2014, lending criteria was changed dramatically which meant that the pre-existing low income interest only borrowers who had planned on remortgaging, downsizing or extending their mortgage terms without a repayment vehicle to cover the capital balance were unable to.
If you are an existing interest only borrower and have any concerns, contact us today for advice.
Source: http://www.mortgagesolutions.co.uk/news/2017/08/02/fifth-low-income-interest-borrowers-dont-understand-product-dwp-finds/?utm_source=Adestra&utm_medium=email&utm_term=&utm_content=&utm_campaign=Daily%20HouseAdvert2&utm_campaignid=249&utm_cmdid=74918
Source: https://www.gov.uk/government/publications/support-for-mortgage-interest-attitudes-towards-taking-the-support-as-a-loan