Shrewsbury and Shropshire’s finest mortgage blog

Welcome back to Shrewsbury and Shropshire’s finest mortgage blog. A few lines on interest-only mortgages… With Interest-only mortgages your repayments only cover the interest on the amount borrowed and nothing from the original loan. At the end of the mortgage term you will still owe the amount that you borrowed and lenders are less and less inclined to allow you to stay on an interest-only mortgage after your mortgage term. Lenders have tightened up interest-only lending since the financial crisis to the point where it has all but disappeared from the market for normal borrowers. Whilst still widely available in the buy-to-let market, it is increasingly difficult to secure interest-only residential mortgages unless there is a large deposit/amount of equity(over 50%). There are solutions to those ‘caught’ on interest-only mortgages. Many lenders will now lend to age 70 and beyond meaning that a mortgage term can be extended, an interest-only mortgage switched to repayment and our clients can rest easy in the knowledge that their mortgage will be paid off by retirement. And that this can all be accomplished within an affordable monthly payment. If you are burying your head in the sand about how you will pay off an interest-only mortgage, get in touch today for a free appraisal. whole-of-market mortgage broker shrewsbury