In this article David Foot addresses the issue of interest-only mortgages, and, more specifically, a shortfall of funds with which to repay them when they fall due.

This is inspired by a case that I have been dealing with recently. My client, a lady in her mid-forties, was sold an endowment mortgage; an interest-only borrowing facility with a life assurance and savings plan alongside, intended to provide the requisite life cover, and a tax-free lump sum enough to repay the borrowed amount, and, hopefully, a tidy little nest-egg over and above that.  Continue reading Interest-Only Mortgages →