Irish interest-only mortgages maturing in less than ten years time have a 40 per cent greater chance of foreclosure than traditional repayment mortgages, according to international credit rating agency Fitch.
The rating agency said that interest-only mortgages were at greater risk of foreclosure for two reasons.
First, borrowers with potential affordability problems were more likely to select an interest-only loan to reduce the size of the initial instalment payment. Second, interest-only loans were riskier because the...
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