Financial services provider LV= has expressed concerns over the effects of interest-only mortgages.

The provider has revealed that many interest-only mortgages have been taken out in the past two decades with no investment package designed to repay the equity of the loan.

This means that, due to the housing market crisis, homeowners with interest-only mortgages will be left with negative equity, making it difficult to remortgage or sell their homes.

LV= Chief executive Mike Rogers said: “People should… seriously consider investing as much as they can now… to help pay off the mortgage capital at the end of the term.”