now with interest-only mortgages
New data reveals that a fifth of all
mortgage lenders are now in a position to make a budget with an
interest-only mortgage loan, this is causing first-time buyers
no options and not a chance on getting on the property market.
There are many people who want to get on to the property ladder
but inflation caused within the market is set to increase more
and more daily making it virtually impossible for first-time buyers.
If an Interest only mortgage is for
a short term and an adequate repayment valuable is in place, people
feel there is a chance to get on the property ladder. From another
perception borrowers mainly first-time buyers do not understand
that this is not the way forward.
Today lenders are in two minds whether
borrowers will be able to fund the interest-only mortgage loan;
MoneyExpert put data forward. In 2006 interest-only mortgages
faded in choice increasing by nearly 30 per cent.
The MoneyExpert chief executive
commented: "Lenders are cautious about the rise in interest-only
mortgages and those who do offer interest-only loans take precautions
such as limiting loan to value ratios to 75%. Lenders also ask
borrowers about how they plan to repay the loan as FSA regulation
means they have to ensure customers are fully informed about the
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