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.

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.