Read on, if you have an interest only mortgage.

According to recently published figures around 40% of outstanding loans on property are currently on an interest only mortgage basis.

Figures suggest that the majority of mortgage loans that are owing in counties in the south east and London are interest only. This could mean that potentially thousands of home owners are without any plan to repay their loan when the mortgage ends.

If you currently have an interest only mortgage, call Deal Direct for advice. We can offer the latest low rate deals available to help you to repay some of your loan. If you are not paying any of the capital each month the debt is not reducing over the lifetime of your mortgage.

Many home owners who have deals that do not include capital repayment are relying on endowment savings plans to repay the debt. However, many of these and other investments have performed poorly and are insufficient to cover the original loan.

When new Financial Services Authority requirements are put in place in 2014, lenders will require information on how loans will be repaid. This could make it far more difficult to get an interest only mortgage and could leave some home-owners with few remortgage options.

If you agreed your mortgage terms some years ago, you may be paying high interest rates compared with rates available today. Figures suggest mortgages on an interest only basis may be more likely to get into arrears. This may be due to people having difficulty switching to the lowest rates.

At Deal Direct we offer impartial advice and competitive mortgage quotes so that you can choose the right mortgage for your circumstances.

Call for a free quote today.

 </p