Interest-only mortgages 'can be helpful'

Money News

www.moneynews.co.uk > Mortgages > Interest-only mortgages 'can be helpful'

Topics

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Features

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Companies

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Money News

bullet
bullet
bullet
bullet
bullet

Interest-only mortgages 'can be helpful'

Homebuyers who opted for interest-only mortgages are not acting precariously with regard to their finances as long as they understand the consequences, an expert says.

Bernard Clarke, spokesperson for the Council of Mortgage Lenders, suggested this type of product could be a good idea for the right person.

The popularity of interest-only mortgages had dwindled significantly since the 1980s, because of fears over endowment plans, but they are becoming a more common choice, he said

He added this type of mortgage "may still be a perfectly rational approach as long as the borrower is fully aware of the consequences and reappraises the need to put in place a plan for the repayment of the capital over the course of the loan".

Research by mform.co.uk shows 21 per cent of mortgage loans in 2006 were on an interest-only basis with no specified repayment method at the end of the mortgage, compared to 24.5 per cent in January 2008.
ADNFCR-323-ID-18525434-ADNFCR

Related News : Mortgages

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet