Following a recent survey by the Council of Mortgage Lenders, it was found that nearly 200,000 people had taken mortgages on an interest only basis without having a savings vehicle to repay the amount borrowed.
Britannia has decided to contact all interest only mortgage clients to remind them of the need to have a repayment vehicle in place.
The lender has also decided to drop all charges for clients moving from interest only to capital and interest repayment.
Our view
This is a very responsible move by Britannia and they should be commended. It shows they are not just in it for the money but want to make sure their borrowers know their obligations and that they are prepared to help them by cutting their charges.
Not sure about your mortgage? Need some advice? Book a free callback from our award winning team.