The interest-only timebomb facing some homeowners has been a major concern for some years in the mortgage market.
It refers to a sizeable chunk of borrowers with interest-only mortgages and no plan to repay them.
In the past those affected tended to be those whose endowment policies hadn’t performed well enough to clear their debts, but the early-2000s boom also created a chunk of homeowners who borrowers tempted to borrow big on interest-only by banks, with no plan of how to pay that off.
On this episode of Lunch Money, Simon Lambert and Helen Crane, of This is Money, look how bad the interest-only crunch can be for borrowers, how big a problem this is and what people can do.
Plus, they consider a question from a reader who has an interest-only mortgage and no way to pay it off.
Also on the show, the competition watchdog revealed this week evidence of something many of us had long suspected, big name consumer brands indulging in so-called ‘greedflation’.
The team look at how this has pushed up prices and made the cost of living crisis worse – and also why the Competition and Markets Authority will probe Nectar and Clubcard Prices.
Later, Victoria Scholar, of interactive investor, looks at why the price of gold is rising and whether this can continue.
And finally, they were written off in the pandemic but airline shares have bounced back, so what do easyJet’s latest results tell us?
