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Equity Release To Help Repay Interest Only Mortgage Capital Sums
08/10/2010
Regulatory scrutiny of interest-only mortgages might lead to an increase in equity release as borrowers struggle to repay the capital sum.
According to the Society of Equity Release the onus is being placed on lenders by the Financial Services Authority to ensure that individuals who are currently paying into an interest-only mortgage have plans in place to pay off their full loan. If borrowers do not have realistic plans then they are at risk of not having time to pay off their loans and as a consequence they will not be able to afford repayment mortgages in the future.
For borrowers who are approaching retirement age and cannot afford to switch to a repayment mortgage; switching to a lifetime mortgage or home reversion plan could be their only options. Unfortunately the vast majority of lenders do not offer such products and many individual's will have too large a loan to switch.
Homeowners aged over 55 years who have an interest-only mortgage nearing the end of its term and would like to know how much money the value of their property could release to help them repay the capital sum, can find out by contacting therightequityrelease.co.uk for equity release advice.
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