Financial Times - Interest-only loans tipped for resurgence
Interest-only mortgages will make a comeback over the next two years as providers jostle for new business and fears of irresponsible lending recede under new regulations, brokers said.
Notwithstanding recent signs of life in the interest-only market, the days of easy borrowing are unlikely to return. Mainstream lenders are highly selective about the type of borrower they will take on, with the maximum proportion of loan-to-value at 75 per cent, and most around 50 per cent.
Aaron Strutt of Trinity Financial told the Financial Times: “Most new borrowers don’t have a big enough deposit or sufficient investments to qualify and this limits demand.”
If you have a large enough deposit and sufficient income to qualify, there are particularly good interest-only mortgage available.
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