With the cost of living crisis in full swing and interest rates at a 15 year high, many home owners and buyers are looking for ways to reduce costs and source more affordable mortgage options.
The uncertainty and rising costs associated with what seems like a never-ending story of interest rate rises, has prompted an increase in clients looking to move to interest-only mortgages in an attempt to soften the blow.
Can you change your mortgage to interest-only?
It is certainly a possibility, and there are some major mortgage lenders that will allow this, providing you’re able to meet their requirements for an interest-only mortgage, which is likely to include a number of criteria including providing evidence on how you plan to repay the balance.
Can I purchase a property with an Interest-only mortgage?
Yes, this is something our experienced brokers may be able to arrange for you. Interest-only mortgages are more complex. And many lenders only provide interest-only deals via intermediaries, like us!
We can also arrange part and part mortgages, this type of home loan combines both interest-only and capital repayment by allowing you to pay just a portion, rather than all, of your mortgage loan back through monthly repayments. That leaves a smaller balance to be settled up at the end of the term.
How can we help?
Speaking to our brokers will give you access to deals that you wouldn’t be able to find on the high street. Even if your existing lender is able to accommodate your request to switch to interest-only repayments, they may not have the most competitive rates or flexible terms that we have access to.
You can get a clearer idea of how these mortgages work and whether you are eligible by getting in contact with us today on 0208 364 3444 or follow this link to book an appointment: https://mortgagesandinsurers.co.uk/get-a-quote/
New calls to allow people to pay mortgage through their wages
A new online petition is calling on the UK Government to allow people to pay their mortgage through their wages before any tax or National Insurance deductions are made, in a similar way to pension contributions.
The petition proposes that amending the ‘salary sacrifice’ process “would allow more people to become mortgage-free sooner” and could help struggling households during the ongoing cost of living crisis.
The ‘Allow people to pay their mortgage through salary sacrifice’ petition suggests that this repayment model would allow more people to become mortgage free sooner in life and put more towards their and their children’s future. It could also help divorced couples, where people are having to start life all over again, on their own, at a late age.”
Late spring surge gives surprising boost to property market
The spring London property market is showing surprising signs of delayed resilience.
Despite the dual economic pressures of sustained high inflation and 12 consecutive Bank of England base rate rises, the capital saw a 2.8 per cent month-on-month rise in prices, according to new data released by Rightmove.
This puts the average London asking price at £696,500, an eye-watering amount for most would-be buyers.
Annually, the price increase was more subdued at 1.1 per cent, but the figures suggest market activity is much higher than expected with properties taking an average of 63 days to sell.