Interest-only mortgage customers could see their homes put at risk
Citizens Advice warns that borrowers with interest-only mortgages which mature in the next seven years could face a shock if their plans for repaying the capital leave them with a shortfall.
Gillian Guy, Chief Executive at national charity Citizens Advice, said:
“Hundreds of thousands of people’s homes could be at risk if they have a shortfall when it comes to paying off their interest-only mortgage. People are getting increasingly worried about this – 6,000 sought online advice on endowment shortfalls in the last year, up a third this April compared with the same time last year.
“It’s vital that interest-only mortgage customers are aware of how much they have to repay and when. It’s right that FCA makes sure banks contact their customers to help them avoid nasty surprises.
“There’s still time to take action, but borrowers must act now. Talk to your bank, or contact your local CAB for more advice.”
Notes to editors:
- The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
- Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014 service statistics see our quarterly publication Advice trends
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.