Following the release from the FCA on consumers’ ability to repay their interest-only mortgages when they mature, Dean Mirfin, Group Director of Key Retirement Solutions says that the interest-only ‘timebomb’ is potentially terrifying.

“This could be a slow motion disaster for lenders and borrowers with at least 60,000 borrowers facing capital repayments by 2020 without any means of doing so and another 260,000 facing the same financial crunch over the next 30 years.

“We have for some considerable time been trying to focus both lenders and borrowers alike on the solutions and not the problem. It is imperative that all borrowers have access to the right advice to consider thoroughly all of their options before its too late.

"Lenders must not allow borrowers to bury their heads in the sand any more. Advice for many is what is needed now ahead of the problem.

“Those most at risk are the over-55s as this is very much a retirement income crisis. But there is time to address the crisis and there are solutions already available ranging from downsizing your home to considering switching to an equity release lifetime mortgage which enables them either to continue paying interest or have interest roll up while escaping the looming repayment date.”