A repayment mortgage may be your only option if you have a small deposit.
Since lending criteria tightened, interest-only mortgages have become difficult to achieve.
You may be directed to a repayment mortgage deal if you do not have a substantial deposit when trying to get a mortgage.
If you have an existing interest only mortgage and need to increase your borrowing in order to move to a more expensive property, you could find lenders may only consider additional borrowing on a repayment basis.
In the past many lenders accepted just 5 per cent as a deposit but now deposits of up to 50 per cent may now be required for an interest-only mortgage. If you have a small deposit you may only be offered a repayment mortgage.
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 not sure what is available, give us a call at Deal Direct and we can find the best deal to suit your situation.
Call today for advice and a quote.
