Lenders
left in the lurk by interest only mortgages
23/03/2007
New research by MoneyExpert shows that
monthly mortgage repayment budgeting is causing major problems
to UK homeowners and people are slowing down the tendency for
lenders to carry out an interest-only mortgage.
MoneyExpert put a survey together and
found out that fifth of lenders are indisposed on offering interest-only
residential mortgages when people apply.
It has also been revealed that a fifth
of 115 mortgage lenders state that they would not give money to
customers until a form stating a special scheme was been filled
out and completed.
Interest-only mortgages are starting
to become more popular than before, CML the Council of Mortgage
Lenders feel that the amount taken up last year increased by a
third to over a staggering 222,000.
The consumer’s feel there is
a big saving here and MoneyExpert estimates that a consumer on
a discounted bundle could save 248 pounds 30 pence every month
with a 150,000 mortgage.
Sean Gardner, chief executive
of MoneyExpert stated, "As long as borrowers are aware of
the risks then it can make financial sense to opt for an interest-only
loan as the monthly savings are significant and can make the difference
in being able to afford a mortgage."
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