Estate agents are increasingly helping customers who have been forced to sell their homes to pay off interest-only mortgages ahead of looming repayment deadlines, an equity release firm claims.
A study of 104 estate agencies found over 40 of them suggesting 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. according to the research commissioned by Key Partnerships.
Estate agents are regularly asked for advice and guidance on mortgages and remortgages by clients – nearly six out of 10 agents questioned said clients want support on mortgages.
Earlier this month Council of Mortgage Lenders data showed the number of outstanding interest-only mortgages had fallen by more than a third since 2012. Key claims many existing interest-only owners are having to sell to clear the debt.
It says around 10,000 borrowers a year between now and 2020 will come to the end of interest-only loans, with either a projected shortfall from their repayment strategy or no strategy at all.