Is interest only on the way back?

There are now two lenders catering for borrowers who are older and don’t want to switch to a capital repayment loan.

Interest-only mortgages allow people with the mortgage to repay just the interest on their loan, keeping monthly payments lower than on capital repayment mortgages.

Brokers were delighted with the bank’s decision to lend to interest-only borrowers for longer. In order to qualify, borrowers will need to indicate that they have sufficient income to make monthly payments and they will need a reliable repayment plan, this could be bonus income, an expected inheritance or assets that can be sold.