Interest-only time-bomb hits over 50s

Clive Gee/PA Wire/Press Association Images

As we reported yesterday, there are growing concerns over a so-called interest-only time-bomb. Around 40% of all UK mortgage-holders are on interest-only deals, 1.5 million of which are set to expire in the next nine years. The trouble is that in the intervening period, mortgage companies have changed their rules dramatically, which mean many hundreds of thousands of these borrowers would not be able to re-mortgage on an interest-only basis today.

And the experts say the over 50s will face the most damaging problems.