The Financial Conduct Authority has raised concern that around 260,000 home owners with interest only mortgages with a repayment due date before 2020 are not making any or any sufficient financial plan to repay the loan.
With around 6 years to go before such mortgage repayments have to be made, there is a call for those borrowers to examine their position and set in place either a budget that allows for repayment or to take advice as to whether the mortgage is enforceable against them. In cases where the mortgage was validly explained and undertaken those homeowners are at real risk that the lenders will take court action in 2020 to force repayment and that could lead to a sale of the property, against the borrowers will, to release the funds.
There remains some confusion as to whether the borrowers properly understood the terms of their mortgages at the time the mortgage was entered into and it could be some or all of them were mis-sold with the lenders not properly explaining the conditions of the mortgage.
If you have an interest only mortgage due for repayment before 2020 you should consult your mortgage document to ensure you understand fully the terms upon which the agreement was made and the conditions of repayment. At Edward Hands & Lewis we can examine this matter on a case by case basis to determine whether you have sufficient evidence to challenge any claim for repayment by the lender as a case of misselling. Please contact Paul Stubbs on 0116 2665394 or by email to firstname.lastname@example.org to discuss this issue in more detail.
Paul is our Managing Director in Leicester. All of our staff in Leicester are experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Leicester please contact us.Talk to our legal team
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