Interest-only mortgage rates remain on offer.
Interest-only mortgage rates have been restricted by many lenders. However it is important to note that interest-only loans are still available.
Lenders are simply making changes to their lending criteria to bring their deals in line with the Financial Services Authority. The FSA want to ensure that every interest-only mortgage holder has a realistic repayment plan in place to pay off the capital owed at the end of the deal.
There has been a lot of comment following Lloyds' decision to change its interest-only mortgage rates criteria. After Santander announced a cut to its interest-only loan to value level, Accord followed suit announcing the withdrawal of its 75 and 85 per cent loan to value products.
The news for interest-only deals is not all bad though, as several lenders are still prepared to approve interest-only mortgage deals up to 75 per cent of a property's value..
Those lenders who are still prepared to offer interest-only mortgage deals include the Halifax, the Yorkshire Building Society, the Nationwide and Northern Rock. It is important though to note that you are still required to pass an affordability assessment and this will be done on the same terms as a standard repayment mortgage deal.
Deal Direct 'whole of market' mortgage brokers are up to date on the latest mortgage rates and different providers lending criteria. We are well placed to get you a competitive deal whether you require a fixed, tracker, discount or interest-only mortgage deal.
