Banks set to make major change to mortgages to help struggling households
STRUGGLING homeowners will be able to switch to interest-only mortgages for six months under updated rules.
Borrowers will also be able to extend the term of their loan to make it cheaper without a bank affordability check.
After talks with Chancellor Jeremy Hunt, financial watchdog the FCA has set standards for how banks should give breathing space to households amid fears they face a mortgage time-bomb.
Mortgage rates are rising, with an average two-year fixed-rate now at 6.39 per cent, amid expectations the Bank of England will lift interest rates further.
Higher rates have led to a “drag” on the housing market,
Nationwide found, as house prices fell by 3.9 per cent in June — the fastest fall since 2009.
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Building profit
THE owner of Legoland, Chessington World of Adventures and Madame Tussauds has toasted record profits.
Merlin Entertainments said that sales rose by 59 per cent to £2billion as tourists flocked back to its resorts after the Covid pandemic.
It means the company has swung from an £84million loss to a £136million profit.
H&M boss Helena Helmersson, who enjoyed a good start to the summer with strong fashion sales and a lift in profits.
