|>>|| No. 5737
Nearly a million homeowners have no way of paying off their mortgages because they opted for interest-only loans, according to Citizens Advice.
The new figure is much higher than previous estimates from lenders and from the City watchdog, the Financial Conduct Authority (FCA).
Citizens Advice said 934,000 owners did not have a plan for how to pay back the money at the end of the mortgage term.
Sarah, who lives near Brighton and has an interest-only mortgage, said she and her husband could hardly afford the interest when they bought their house and frequently fell into arrears.
"We were silly. We'd just had our first baby," she said.
IT WOZ DA BANKAS WOT DUN IT. But they shouldn't have given the loan. We didn't understand what we were taking on and didn't think about having to pay it back."
They have 16 years until they have to return nearly £200,000, but admit the debt has become a constant worry.
I'm finding it hard to feel sympathy. They've used an interest only mortgage to live in a house they would have otherwise been able to afford and, if they need to downsize at the end because they can't afford to pay it off, it's likely the value of the property has gone up a fair bit since they took the mortgage out and the full have made a nice tidy lump sum. The clue is in the name.