Almost half of homeowners on interest-only mortgages will be unable to pay back their loans in full when their deal ends.
Modelling by the Financial Conduct Authority shows that 46% will be unable to pay the debt. However, a survey of interest-only mortgage holders by Opinium gave the figure of 36%, suggesting that borrowers’ confidence may be misplaced.
The FCA said its research showed the number of interest-only home loans had fallen to less than 1m, down from 2m in 2015.
