Just the mention of the Mortgage Market Review was nearly enough for many banks and building societies to adjust their acceptance policy or ban interest-only completely.
The financial regulator has made it clear that lenders are allowed to offer interest-only mortgages, but only where there is a creditable strategy for repaying the mortgage.
We recently had a visit from one the leading banks asking us what they can do increase their interest-only lending and this is an incredible reversal from the last few years.
In recent months, a host of the banks have actually improved their interest-only criteria to attract wealthier borrowers. Even so, it can still be hard to qualify for even if borrowers have significant deposits.
If you are planning to take out an interest-only mortgage some lenders allow you to take part of the loan on put interest-only. You will typically need to demonstrate that you have a sufficient share portfolio or financial investments to put towards repaying the capital.
You can also qualify if you have a significant amount of equity in your property and plan to downsize at the end of the mortgage term.
If you would like help to secure an interest-only mortgage, call Trinity Financial on 020 7016 0790.
April 3, 2o14