A repayment mortgage may be the deal for those with small deposits.
You may be directed to a repayment mortgage if you do not have a substantial deposit when trying to get a deal. As the trend moves away from interest only mortgages Nationwide is one of the recent lenders to substantially reduce offers of interest-only payments.
It has been reported that Nationwide may soon require a minimum 50 per cent deposit for new interest-only mortgages and this could also impact on existing borrowers. For instance if you have an existing interest only mortgage and need to increase your borrowing in order to move to a more expensive property, you might find it difficult to get a new deal.
In the past many lenders accepted just 5 per cent as a deposit and while deposits of 25 per cent are now required by some lenders, the criteria for interest-only mortgages is becoming even more strict. If you only have a small deposit a tracker or repayment mortgage deal could be your best option.
With stricter interest only criteria for lending, many mortgage providers are asking for clear proof that a savings or investment plan is set up to pay the debt at the end of the loan. At Deal Direct we are familiar with the lending criteria of different mortgage providers and can quickly source a deal that would suit you.
Whether you are looking for an interest-only or repayment mortgage or are you not sure what is available, give us a call at Deal Direct and we can find the best deal to suit your situation.
