It is being feared that people who take interest only loans would leave their heirs with big debts. A number of borrowers have taken interest only mortgages with no means of repaying them. Banks and building societies are resorting to severe measures in order to help stave off financial disaster which includes controversial never ending mortgages.



A decade of strong house price growth has led to one in four borrowers to take out interest only loans where monthly repayments could only cover the interest. These mortgages enable first time buyers to cut costs which enables existing homeowners to move on to properties which would otherwise be out of reach due to lower monthly repayments.



Lenders fear that homeowners might be bringing trouble for the future as they have no means of repaying the original loan as borrowers are generally not required to have a repayment vehicle in place when they sign up. Unknowingly these people might be passing their unpaid mortgage to their children.



In order to avoid this mess the borrowers need to be disciplined enough so that he or she can pay off the capital and not pass off the burden to their children.