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Shortfall fears for interest-only mortgage holders

More than a million people with interest-only mortgages face a financial crunch when they have to pay them off, a watchdog is warning.

Some 2.6 million UK householders have the mortgages, but the Financial Conduct Authority says estimates suggest nearly half will not have savings or other funds to cover the final bill.

The average shortfall is £71,000, according to FCA research.

Simon Gompertz reports.

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