Are lenders latest mortgage deals on offer for re-mortgage from interest only?

There is concern that some of the latest mortgage deals may not be available to interest only borrowers wanting to re-mortgage following recent rates increases.

The Financial Services Authority is intending to crack down on what it considers to be irresponsible lending by the introduction of new rules that ensure borrowers only commit to mortgages that are affordable. Unfortunately this could make the situation worse for some home owners who are already struggling to change to a better deal.

The FSA's Mortgage Market Review, published at the end of last year, proposed new rules for mortgage advice. Stricter lending rules will mean that borrowers income and outgoings will need to be checked for every application.

It has been suggested by consumer panels that a new rule should be introduced to ensure that borrowers are not unfairly discriminated against preventing them from securing the latest mortgage deals. Concern is that interest only mortgage holders trapped in existing deals will be charged higher interest rates.

If you are on an interest-only deal you may find it more difficult to re-mortgage due to the recent reduction in interest-only deals available and especially if there is limited equity in your property. After the recent standard variable rate increases this could affect a large number of borrowers.

If you are looking to re-mortgage contact Deal Direct for the latest mortgage deals throughout the market. We are constantly checking the deals that come onto the market and the different lending criteria associated with different products.