What to do if you have an interest-only mortgage

A guide for homeowners on interest-only mortgages has been released by the Money Advice Service.

A regulator warned that those on interest-only mortgages are facing a "wake up call". Credit: Dominic Lipinski/PA Wire

The Financial Conduct Authority warned that those on interest-only mortgages are facing a "wake up call" because around half will not have enough money to pay their loans back.

Read: Warning for homeowners with interest-only mortgages.

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Interest-only mortgage warning

The City watchdog has warned that a quarter of a million homeowners with interest-only mortgages will be unable to pay off their mortgage at the end of its term.