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Rachel Burden and Rick Edwards with the new look 5 Live Breakfast.

Rachel Burden and Rick Edwards with the new look 5 Live Breakfast, with unique stories from across the UK, explaining details behind the headlines, and the biggest news and sport.

Rachel Burden and Rick Edwards with the new look 5 Live Breakfast, featuring unique stories from across the UK, explaining the details behind the headlines, and the biggest news and sport.

5 live Breakfast: Your Call

5 Live Breakfast: Your Call: 02/05/2013

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02/05/2013

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BBC Radio 5 Live - 5 Live Breakfast, Your Call, 02/05/2013

People in debt over interest-only mortgages; is it their fault or the banks?

More than a million people are facing huge debts, because they took out interest-only mortgages. Is that their fault - or the banks?

This morning: 

More than a million people are facing huge debts - because they took out interest-only mortgages. Is that THEIR fault - or the banks'?

The Financial Conduct Authority says it's a ticking time bomb; they'll owe - on average - 71-thousand pounds at the end of their mortgage term, because they HAVEN'T made any plans to pay off the lump sum.

It's a cheap way of getting onto the property ladder - in the short term. But in the long term - you still have to pay for your property.

MARTIN WHEATLEY from the FCA says If YOU take the interest-only route -  then it's YOUR responsibility to put money aside too.
 
But RICHARD LLOYD from Which? says the lenders were ALSO guilty - because they sold mortgages to people who couldn't pay ... or just didn't know what problems lay ahead if they didn't save.

What do you think....who's to blame? The homeowners who just borrowed the cash and didn't think about the future? Or the banks - who sold them the deal in the first place?

5 Live Breakfast: Your Call

The UK’s home of live news and live sport.

The UK’s home of live news and live sport. With live Premier League and FA Cup football, and Formula 1, Olympics and cricket coverage.

Nicky Campbell takes your calls on the day's big story.

Nicky Campbell takes your calls on the day's big story.
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