Life Time Mortgage Opportunities
19th April 2012
Interest only loans threaten to blow up in the faces of borrowers approaching retirement
Between 2011 and 2020 the FSA thinks that 1.5m such mortgages, worth £120bn, will be due for repayment. The FSA believes that 80% of the borrowers have no repayment strategy for these mortgages, and will enter retirement in debt because of this.
Source: Rosie Murray-West – The Telegraph, 4 April 2012
Many clients will have to find alternative ways to repay their Mortgage. One solution would be to set up a Lifetime Mortgage, where they would continue to repay just the interest on the loan until such time as their property is sold. If you would like find out more about how this could benefit you, please feel free to call Ali.
