Take your mortgage to the grave, older borrowers told
Lest you thought that rural places were just full of affluent elderly, spare a thought for the individuals and families in rural England likely to be affected by this development. The story tells us:
Older home owners will be told to take mortgages for life or leave their homes under plans to tackle Britain’s interest-only mortgage crisis.
Several major banks will propose “lifetime” contracts to borrowers in their 50s and 60s who face a shortfall when their mortgage ends, The Telegraph understands.
The lenders will allow customers to repay just the interest on their debts until they die, at which point the properties will be sold and a large chunk of the proceeds passed to the bank.
Around 130,00 interest-only mortgages are due to expire every year until 2020, with half facing a shortfall of £71,000 on average, according to the City watchdog. One in 10 borrowers have no repayment plan in place at all.