House Sales Surge Due To Interest-Only Worries

New research from equity release referral service, Key Partnerships, has revealed that many homeowners are being forced to sell their homes to pay off interest-only mortgages ahead of looming repayment deadlines. The report found that more than two out of five estate agents (43%) say the number of customers forced to sell to pay off interest-only mortgage debts has increased over the past two years. Mortgage debt issues are particularly affecting older customers trying to downsize to less expensive houses to release cash. Key’s research found 73% would-be downsizers are paying off mortgages. Estate agents are regularly asked for advice and guidance on mortgages and remortgages by clients – 58% say clients want support on mortgages. Read more on the property reporter website.

UK Households Paying Off Mortgages in Record Time

British households are paying off their mortgages at a record pace, cutting their debt by £13bn in the first quarter of 2015 alone, according to figures from the Bank of England. In an extraordinary reversal to the years running up to the financial crash, when households used their homes as cash machines to finance extensions, new cars and holidays, Britain’s mortgage holders are now paying their debt down. The first quarter of 2015 marked the 28th successive quarter of net injection of equity into houses, taking the total to £313bn since June 2008.  The latest figures have surprised economists as they show an acceleration in repayments – called “net housing equity injection” – despite the improvement in the economy. Read more on the Guardian website.