Millions of UK Home Owners Might Not be Able to Pay Their Interest Only Mortgages

The video discusses the challenges faced by borrowers with interest-only mortgages, highlighting the risks of ignoring repayment plans. It emphasizes the importance of planning and communicating with lenders to avoid severe consequences like losing one's home or having debts written off. The Financial Conduct Authority warns that many borrowers may be overly optimistic about their ability to repay, urging proactive measures to address the issue.

What financial decision did the former stockbroker make 10 years ago?

• He sold his house.

• He invested in the stock market.

• He started a new business.

• He took out an interest-only mortgage.

How many interest-only mortgages are due to be repaid over the next 30 years?

• 3 million

• 2.6 million

• 1 million

• 500,000

What does the Financial Conduct Authority believe about borrowers' optimism?

• Borrowers are overly optimistic.

• Borrowers are being realistic.

• Borrowers are too pessimistic.

• Borrowers have no opinion.

What is a potential worst-case scenario for borrowers who cannot repay their mortgage?

• They could face a fine.

• They might have to change jobs.

• They could lose their home.

• They might have to sell their car.

What should borrowers do to avoid drastic measures like selling their home?

• Invest in stocks.

• Talk to their lender.

• Take out another loan.

• Ignore the problem.