FCA study into interest-only mortgages – ‘a vital wake-up call’ says HomeOwners Alliance
The Financial Conduct Authority (FCA) has released a report calling for lenders to act now to help those with interest-only mortgages
May 2, 2013
The HomeOwners Alliance welcomes the Financial Conduct Authority’s demand for lenders to contact all their clients who have an interest-only mortgage. Hundreds of thousands of people are at risk of losing their home if they do not ensure they have a viable repayment plan in place. All homeowners with an interest-only mortgage should investigate all the options available to them and make preparations now.
Paula Higgins, chief executive of the HomeOwners Alliance, championing homeowners, said:
“The FCA’s report is a vital wake-up call. Banks & mortgage lenders must not abandon their homeowners. They must help them move off the interest-only deals in an affordable way to keep the roof over their heads.”
“We are particularly concerned for those nearing retirement age because their options are severely limited – and those in negative equity who can’t remortgage or move.”
Respondents to our recent survey into interest-only mortgages commented that “age restriction to extend terms prevents us reverting to repayment now’ and ‘As an OAP with a small interest only mortgage I am unlikely to be able to find an alternative”
In March we released our report “On the Edge” which documents the real danger interest-only mortgage pose. Nearly 300,000 people believe they will have to sell their home as a result of increased restrictions on interest-only mortgage lending.
Notes to editor: 1. The FCA’s findings supports the HomeOwners Alliance’s report, On the Edge, which found that: – Most interest-only mortgage holders (60%) are worried about how planned changes will affect them (25% very concerned), and that the changes raise fears with those those nearing retirement age. See the press notice and the full report, including quotes from concerned homeowners.
2. The HomeOwners Alliance champions the interests of Britain’s homeowners and aspiring homeowners, and provides
services they can trust. We are a membership organisation, acting as the voice of the homeowner in the media, lobbying
for the interests of homeowners and aspiring homeowners in government, and campaigning against bad practices in
3. We directly engage with government and the media by conducting independent research and publishing reports that
promote and champion the interests of homeowners. Former Housing Minister, Grant Shapps, called the HomeOwners
Alliance “good news for homeowners and homeownership”.
experts. We are modelled on successful similar organisations on mainland Europe, notably in the Netherlands, Sweden
When quoting this Press Release please link to the HOA website at http://hoa.org.uk/For media enquiries contact Paula Higgins on 020 3397 3292, or 07947 240 293,firstname.lastname@example.org Martin Shankleman on 07747 896056, email@example.com,