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CML: Interest-only borrowing, solar panels, and Osborne’s Budget 2012

CML: Interest-only borrowing, solar panels, and Osborne’s Budget 2012

Is interest-only borrowing really a ticking time-bomb?

Market and regulatory changes have made it less common, although it remains an appropriate choice for some borrowers. Our data shows that most interest-only mortgages have a comfortable equity cushion by the time they mature. And lenders are looking at what can be done to help the minority who have not saved enough to pay off the capital they borrowed at the outset.

Today’s issue of CML News & Views also looks at the issue of leasing your roof for solar panels. Lenders support green energy initiatives, and following the guidance we published last year should help avoid problems. We also conclude that what the chancellor didn’t say in his recent Budget may have been more important for home-owners than what he actually announced.

To see all the stories in full, go to the latest issue of CML News & Views.