Thousands switch to interest-only mortgages

Mortgage holders are choosing interest-only packages without firm plans on how to repay the capital in the long term. The FSA has revealed how the financial crisis and post-recession climate has affected mortgage repayments. Almost 30,000 home owners have transferred their mortgage repayment plans into interest-only deals to reduce their monthly instalments and cover the cost of living. Statistics from the Financial Services Authority (FSA) highlight that over £60 billion of mortgage debt has been moved across to the more affordable interest-only option as families struggle to cope with rising inflation and stagnant wages.