Today’s big financial news is the looming time-bomb for interest-only mortgage holders. Below is a quick summary of the problem:
“Some 2.6 million UK householders have the mortgages but the Financial Conduct Authority said estimates suggested that nearly half would not have savings or other funds to cover the final bill. The average shortfall is £71,000, according to FCA research.” The FCA is new name for the Financial Services Authority.
At first glace, this is a massive and scary problem and the end result could cost hundreds of thousands of people having to either sell their house or having to take out a new 25 years mortgage to pay off