24 | 03 | 14

How to defuse a time bomb?

Posted by: andrewlund

At the peak of the mortgage madness it was common for borrowers to take out interest only mortgages with no specified repayment vehicle. After all, house prices would keep rising and  downsizing would generate enough cash to pay off the debt. It hasn’t quite worked out that way! The fact is that many borrowers are still in negative equity. With typical mortgage terms still having a way to run the scale of the problem facing them (and ,just as importantly, their Lenders) has, in the past, been likened to a “Ticking timebomb”. So has the Chancellor ridden to the rescue with his pension reforms? The borrowers in question are typically in their 50s. Those that have pension pots will be tempted to raid them in order to pay off some or all of their mortgage debt. Expect Lenders to give them a nudge!

Andrew Lund
Andrew Lund

Compliance Officer for Legal Practice

Andrew oversees the Firm’s Quality Systems and is committed to making sure that our client’s receive the very best customer care and attention along with the best marketing and legal advice in the area.

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