There has been a rise in the number of interest-only mortgages being taken out in the last five years.
Figures released by Paragon Bank show interest-only mortgages accounted for 20% of new mortgage business among brokers in the second quarter of 2019 – higher than the 15% recorded five years ago.
The proportion of borrowers taking capital and interest repayment mortgages compared with interest-only mortgages has been relatively stable since 2014 at around 80% and 20% respectively.
Aaron Strutt, product director at Trinity Financial, says: “More lenders have come back into the interest-only market so there is a lot more choice for borrowers. A few months ago there were at 47 lenders offering interest-only deals.
“If you are looking for an interest-only mortgage and have a plan to repay the mortgage once the term expires, more of the bigger lenders have attractive acceptance policies.”
Santander for Intermediaries, NatWest, Accord Mortgages, Halifax and Scottish Widows have all changed their interest-only policies over the last year. If you have a large enough deposit or enough equity in your home, there is a choice of lenders allowing the sale of the property to be used as the repayment vehicle.
Call Trinity Financial on 020 7016 0790 to secure an interest-only mortgage or book a consultation