Interest-only mortgages have been a popular topic of discussion by lenders, brokers and customers as they could offer a solution in select cases.
According to the latest UK Finance figures, there were 702,000 pure interest-only homeowner mortgages outstanding at the end of 2022, which is 6.9 per cent lower than 2021.
However, Mortgage Charter measures, which allow a customer to temporarily switch to interest-only payments for six months could be leading to heightened interest.
A survey earlier this year found that 40 per cent of mortgage advisers had seen an increase in interest-only mortgages.
Indeed, Kate Davies, executive director at Intermediary Mortgage Lenders Association (IMLA), has said that higher interest rates and cost of living has bolstered interest in interest-only arrangements, but has urged caution.
Adding to this note of caution, the Bank of England has warned that extending mortgage terms and switching to interest-only could heighten debt burdens in the long term.
This month Mortgage Solutions is asking brokers whether they have seen an increase in customers opting for interest-only mortgages in the last year.
Have you seen an increase in customers opting for interest-only mortgages in the last year?
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
