Screw tightens on specufestors as interest-only mortgages re-set

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By Leith van Onselen

Last month, UBS released stunning analysis showing the volume of interest-only mortgages due to expire will rise to $105 billion in 2018, then $133 billion in 2019, and $159 billion in 2020:

Borrowers switching from interest-only to principle and interest mortgages are facing a 35% to 50% increase in mortgage repayments, according to UBS, representing a massive drain on their cash flow.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.