It was additionally revealed that 32 per cent of respondents switched to an interest-only mortgage at a later date due to the lower monthly payments.
Repayment plans
Insight was also provided into repayment plans, with 78 per cent of respondents reporting they were aware they needed a repayment plan when they took out the mortgage
This was in contrast to the 14 per cent of respondents who did not know when they took out their mortgage.
Additionally, one in 10 respondents were not able to share an intended repayment strategy, with 7 per cent saying they did not know how they would pay off their mortgage and 3 per cent saying they could not afford to.
Geale stated: "If you have an interest-only mortgage and are unsure if your current plan is sufficient, speak to your lender as soon as possible, to discuss your options."
tom.dunstan@ft.com
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