How to avoid falling into the Interest Only mortgage trap when you retire

No surprise as interest rates on hold for another month_istockNew research, from the Independent on Sunday newspaper, has found that more than a quarter of a million people with Interest Only mortgages could retire by the end of this decade whilst still having the debt outstanding. Popularity of Interest Only mortgages Interest Only mortgages were very popular in the 80’s and 90’s when they were often set up with Endowments or ISAs (Individual Savings Accounts) as repayment vehicles. However, ...

Household debt continues to rise

New figures from the Bank of England have shown that household debts, excluding mortgages, have increased by over £5 billion in the past year. The rise is the largest since the recession and means that UK households now have £208 billion of outstanding debts on credit cards, overdrafts and bank loans. The average UK household now has debt, again excluding mortgages, of £9,070 and the level is rising, just last month debts increased by £629 million. Rising living costs Economic experts believe that as prices rise faster than wage increases some people are having to borrow just to meet the day to day cost ...