According to the Express, expect more fuel to be thrown on the house price fire as pensioners get into the buy-to-let game as an alternative way of providing themselves with an income, pushing house prices up by as much as 30% (there’s no mention of time frame, however… a classic bogosity red flag). According to the Guardian, the further twist in the tail comes in the form of interest-only mortgage debt. With 600,000 interest-only loans due to end in 2020, and a significant proportion of those borrowers unlikely to be able to pay of the actual loan, the change in the pension rules couldn’t have come at a better time. Some are even wondering whether there’s method in this madness. However, I suspect the majority of borrowers with interest-only loans are more likely to reach retirement age a bit later than 2020.
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