Interest only mortgage deals - are they still on offer?
Interest only mortgage deals are becoming far less common. The Co-operative recently withdrew it's entire range and other lenders have tightened criteria making it far more difficult to borrow on this basis.
Lenders deposit levels for interest only mortgage deals have significantly increased.
While products remain on offer only those with a minimum 50% deposit or equity are likely to qualify for a deal, and only if they have an adequate repayment vehicle in place to cover the repayment of the capital owed at the end of the mortgage term
After the credit crisis the property market experienced a dip, which has meant that many interest only borrowers now have a lower equity level which is making it harder to remortgage or switch deals.
However, several lenders such as Barclays, HSBC and Virgin Money continue to be happy to offer interest only products, providing borrowers can prove the capital owed can be repaid at the end of the mortgage term.
For those who haven't an adequate interest only mortgage repayment plan in place the advice is to contact Deal Direct.
Whether you are looking to compare interest only offers or switch to a repayment mortgage call Deal Direct today, we will search the market for a competitive product ideally suited to you.
