The Financial Conduct Authority is considering a change to the rules on interest-only mortgages that would help older homeowners, many of whose mortgages are approaching maturity.
Rules on lifetime interest-only mortgages require borrowers to illustrate how they will pay off the amount due, and that they will have enough equity to buy somewhere else if they intend to sell the property.
The FCA could class retirement interest-only mortgages separately, allowing the loan to be paid off through the sale of the property once the owner dies or goes into care.
