‘Time bomb’ alert for 1.9 million on interest-only home loans: Families being forced to sell when their deals expire

‘Interest-only mortgages are a ‘ticking time bomb’ for hundreds of thousands of families who have no idea how they will repay the money they owe, experts have warned.
As many as 1.9million borrowers are paying off the interest on their home loans without making a dent in the capital, figures from the Council of Mortgage Lenders (CML) show.
It is estimated that one in ten of these households have no plan in place to pay off the loan when their mortgage deal expires. And many who do have a plan may find they do not have enough money to repay the loan in full.
They could be forced to sell their home to raise the funds needed.
Adrian Anderson, a mortgage broker with Anderson Harris, said: ‘We have definitely got an interest-only mortgage ticking time bomb scenario.’’
Read more: ‘Time bomb’ alert for 1.9 million on interest-only home loans: Families being forced to sell when their deals expire