Interest-only mortgages 'can be perfectly rational'

Switch for the chance to WIN an amazing Amazon Echo Dot

Three of Amazon's most popular personal assistants to be won! (T&Cs apply)http://switch.ukpower.co.uk/black-friday-winter-bills-promo

in partnership with Banner uswitch

Looking to switch your business energy supplier? Click here

* Between 1 Jan 2018 and 30 Jun 2018, at least 10% of people who switched energy supplier for both gas & electricity with uSwitch saved £482 or more.

Interest-only mortgages have been described by a leading expert as a "perfectly rational" product for some homeowners.

However, the Council of Mortgage Lenders' (CML) communications manager, Bernard Clarke, has warned that borrowers need to be fully aware of the consequences when taking out such a product.

Recent figures from mform.co.uk found that there had been an increase in the number of choosing interest-only mortgages.

Mr Clarke said the rises should not necessarily make the industry wary, saying: "If they're taking it from an informed point of view then there isn't a need for concern about that.

"If borrowers are taking opportunities later when they remortgage to address the problem then that's fine."

The CML is the UK's leading trade association for the mortgage lending industry.

Representing 98 per cent of the UK's residential mortgage lending, the organisation was created to be a representative voice for the industry, as well as a leading provider of research and market information.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.


Found this page interesting?

Help spread the word and share this page with your friends and family on your social networks.

Cookies help us deliver our services. By using our services, you agree to our use of cookies. Learn more