There has been much speculation in recent years over the return of Interest Only mortgages in Britain. The once popular mortgages were almost impossible to obtain after the credit crunch of a decade ago.
A normal mortgage term in the uk is 25-35 years and almost always on a repayment basis so that at the end of the term your mortgage has been paid off. A Swedish style mortgage usually has a term of 77-100 year term and are always interest only. In many ways this is no better than renting in that you never own any of the property, however unlike renting you do have a house guaranteed for as long as you need it.
This would solve many of the problems that we are still encountering with over 60s who currently have interest only mortgages that are due to be repaid and with no funds to repay they are forced to down size or take costly equity release mortgages.
Whilst we are a long way off this becoming reality it is encouraging that the FCA are giving the idea serious consideration.