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.... In 2007, one in 15 existing homeowners moved house, a figure that has fallen to one in 27 in 2017. “Long gone are the days when interest-only borrowing would allow homeowners to make frequent moves up the ladder. ... [Read full article on Guardian ]
Wednesday 26th of July 2017 11:01:33 PM
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.... Most deals will allow some form of penalty-free overpayment. Another reason why longer-term deals have taken off is because of the tightening of the rules around interest-only deals, which are much harder for first-time buyers to access, says Hollingworth. ... [Read full article on Guardian ]
Saturday 29th of July 2017 06:00:43 AM
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.... The buy-to-let mortgage was born. Around the same time, banks were loosening their lending criteria, offering multiple jumbo-sized loans, sometimes with little verification of the borrowers, and interest-only deals to keep repayments cheap. ... [Read full article on Guardian ]
Saturday 12th of August 2017 06:00:37 AM
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.... Some households will be left with little choice but to sell their home. Adrian Anderson, a mortgage broker with Anderson Harris, said: "We have definitely got an interest-only mortgage ticking time bomb scenario. ... [Read full article on Daily Express ]
Monday 24th of July 2017 04:40:00 PM
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Latest Finance News related to Interest-only

Have we gone too far in vilifying landlords? | Patrick Collinson image
Source : Guardian [Read Article] Saturday 12th of August 2017 06:00:37 AM
.... The buy-to-let mortgage was born. Around the same time, banks were loosening their lending criteria, offering multiple jumbo-sized loans, sometimes with little verification of the borrowers, and interest-only deals to keep repayments cheap. ...
Goodbye 25-year mortgages, but are we walking into a borrowing trap? image
Source : Guardian [Read Article] Saturday 29th of July 2017 06:00:43 AM
.... Most deals will allow some form of penalty-free overpayment. Another reason why longer-term deals have taken off is because of the tightening of the rules around interest-only deals, which are much harder for first-time buyers to access, says Hollingworth. ...
Housing market still reeling a decade after financial crisis, Savills says image
.... In 2007, one in 15 existing homeowners moved house, a figure that has fallen to one in 27 in 2017. “Long gone are the days when interest-only borrowing would allow homeowners to make frequent moves up the ladder. ...
Mortgage time bomb? Interest-only borrowers with NO plans to repay debts image
Source : Daily Express [Read Article] Monday 24th of July 2017 04:40:00 PM
.... Some households will be left with little choice but to sell their home. Adrian Anderson, a mortgage broker with Anderson Harris, said: "We have definitely got an interest-only mortgage ticking time bomb scenario. ...
Should I cash in my endowment early to pay off my mortgage? image
Source : Guardian [Read Article] Thursday 20th of July 2017 06:00:13 AM
. Q The current fixed-rate deal on my interest-only mortgage of £47,000 will finish at the end of next March, and the entire mortgage term is due to end in July 2023. ...
How credit score agencies have the power to make or break lives image
Source : Guardian [Read Article] Monday 17th of July 2017 06:00:43 AM
. Omar Nasser came close to losing his home when his interest-only mortgage expired earlier this year and his application for a new loan was turned down because he failed a credit check. ...
Is paying off the mortgage a better bet than saving? image
Source : Guardian [Read Article] Thursday 13th of July 2017 06:00:00 AM
....Q We are a family with some savings – around £70,000 – but are worried they might be worth less once Brexit is decided: ie, the pound will go downhill. So if we want to put the savings into something, is it best to pay off a big lump sum on a mortgage of £135,000 with 12 years to run, or use the money to buy another property to let out? Or do both? The mortgage on our home is a two-year interest-only deal that expires in June. ...
Equity release rates fall: Homeowners paying off interest-only mortgages could save image
....82 per cent. Many homeowners turn to equity release to pay off interest-only mortgages, after finding it difficult to take out a capital repayment mortgage, separate research has recently suggested. ...
Older homeowners forced to sell properties to clear debt on mortgages image
Source : Daily Express [Read Article] Wednesday 28th of June 2017 08:25:00 AM
.... Between now and 2020, at least 10,000 borrowers every year will come to the end of their interestonly loans with no means of paying off their debt. Will Hale, director at Key Partnerships, a subsidiary of specialist equity release advisers Key Retirement, said that selling up to pay off an interest-only mortgage can make sense but older homeowners must be aware of all options open to them: “One alternative is to take out an equity release plan, which allows you to generate cash from your property while continuing to live there. ...
Endowment plan: Need-to-know advice on interest-only mortgage repayment problems image
....Forced out. Some 43 per cent of estate agents have seen a rise in “forced” sales from customers with interest-only mortgage repayment problems over the past two years, according to new research from Key Partnerships. ...
REVEALED: How many interest-only borrowers are paying off their mortgage image
Source : Daily Express [Read Article] Wednesday 10th of May 2017 11:05:00 AM
....Homeowners have the right to stay in their homes until they die. It's estimated that around 600,000 people have interest-only mortgages that will mature by 2020. ...
Having enough money is key to happy retirement image
Source : Daily Express [Read Article] Sunday 9th of April 2017 12:01:00 AM
.... . Retired couple Henry and Margaret Sams, from Salisbury, Wiltshire, used the bulk of the money they raised to clear the unpaid interest-only mortgage on their home. ...
Property’s equity can help your loved ones image
Source : Daily Express [Read Article] Sunday 9th of April 2017 12:01:00 AM
.... . You can spend the money on whatever you like, and many are also using equity release to clear the capital on their interest-only mortgage, because the endowment designed to pay off the debt left a shortfall. ...
Sydney property prices rise almost 20% in past 12 months image
Source : Guardian [Read Article] Monday 3rd of April 2017 03:08:56 AM
....“Weaker economic conditions in states reliant on the mining industry, rising underemployment, weak wages growth and less favourable housing market conditions will drive delinquencies higher,” vice president and senior analyst Alena Chen said on Monday. On Friday the banking regulator, the Australian Prudential Regulation Authority (Apra), wrote to major lenders warning them to tighten their lending practices on investor and interest-only loans. ...
Mortgage tax relief cut doesn’t add up for buy-to-let landlords image
Source : Guardian [Read Article] Saturday 1st of April 2017 06:00:17 AM
....However, campaign groups such as Generation Rent, say the changes could dampen property speculation and create a fairer market. The table (below left) provided by John Charcol shows how the tax change might work in practice, and is based on a 40% taxpayer with a £450,000 house, on which they have a £337,500 interest-only mortgage with an interest rate of 5. ...
Interest-only mortgage deals: Bank to help 100,000s borrowers with new change image
Source : Daily Express [Read Article] Wednesday 15th of March 2017 02:15:00 PM
....The little known lender hopes the new loan could shake up the mainstream mortgage market, which imposes arbitrary age caps as part of lending criteria- regardless of income stream. Over 55s left with outstanding balances on interest-only deals when a deal ends, often turn to equity release or in the worst case sell family homes to pay off debts. ...
Should I use a quick-property-sale company to speed up my move? image
Source : Guardian [Read Article] Thursday 2nd of March 2017 07:00:10 AM
....The other thing to do is work out how quickly you really need to sell your current home. Could you afford to rent for a few months in your new location while your home remained unsold and you still had to be paying the mortgage on it? If the sums look tight, would your mortgage lender let you switch to a cheaper, interest-only mortgage once you have moved out and the house is on the market? If it turns out that you don’t need to rush a sale, you are likely to get a much better price for your home. ...
Tackle your debts while interest rates are at lowest image
Source : Daily Express [Read Article] Sunday 19th of February 2017 11:59:00 AM
.... . David Hollingworth, broker at L&C Mortgages, says older homeowners with interest-only mortgages need to review their debt: “If you have a capital repayment mortgage, check it is set up to clear the mortgage on your retirement date, or preferably earlier. ...
One in four UK retirees burdened by unpaid mortgage or other debts image
Source : Guardian [Read Article] Friday 17th of February 2017 06:49:49 AM
....The Prudential insurance company found the proportion of people who expected to retire in debt this year to be at its highest level for seven years, and that the level had risen to 44% in London. The research follows a study by the Financial Conduct Authority which found that 2017-18 would be the first of three “peak periods” when large numbers of interest-only mortgages would mature. ...
How can we calculate what we have each contributed to our house? image
Source : Guardian [Read Article] Thursday 10th of November 2016 07:00:26 AM
.... At the time, I put in around £66,400 and he put in £20,300. Our initial interest-only mortgage was £180,000 plus the arrangement fee of £781. ...
My friend and I have a joint mortgage. What will happen after I die? image
Source : Guardian [Read Article] Thursday 13th of October 2016 06:00:34 AM
.... We are both disabled – me more so – and the house has been adapted to our needs. Our joint interest-only mortgage ends in December 2017 when we will need to repay £48,000. ...
Erupean Union ruling traps homeowners image
Source : Daily Express [Read Article] Wednesday 14th of September 2016 09:49:00 AM
.... . “Those looking to borrow at a higher loan-to-value (LTV) or who want an interest-only mortgage can struggle to find finance,” he says. ...
Interest rate cut: good news for mortgages, bad news for savers image
Source : Guardian [Read Article] Saturday 30th of July 2016 06:01:26 AM
.... If the Bank of England slashed rates to zero, the mortgage cost drops to £636 a month. The impact is bigger if the borrower has an interest-only mortgage. ...
Homeowners in northern England 'most vulnerable to negative equity' image
Source : Guardian [Read Article] Thursday 14th of July 2016 12:15:47 PM
....”. The ratings agency said borrowers with interest-only mortgages and those who took out home loans in the run-up to the financial crisis were most likely to lose the equity they had gained since 2009 if house prices dropped. ...
UK interest rates: what would a cut mean for you? image
Source : Guardian [Read Article] Thursday 30th of June 2016 04:49:09 PM
.... If he slashes them to zero, the mortgage cost drops to £636. The impact is even bigger if the borrower has an interest-only mortgage, although these have largely disappeared since the credit crunch. ...
The interest-only mortgage is back, but you’ll need to clear a few hurdles image
....They almost became extinct in the wake of the credit crunch, and were once branded a “ticking timebomb” by the City regulator. However, interest-only mortgages have begun moving back into the mainstream. ...
I want to sell a flat I own with my brother, but don't know how to split the profit image
....A lot depends on the type of mortgage you both have. If it’s interest-only – which it could well be given the date you bought the flat – none of the amount you borrowed will have been paid off when you come to sell so it seems reasonable for you and your brother to split the profits equally. ...
Negative gearing is not preventing a fall in house prices. It's already causing one | Lindsay David image
.... According to the Domain Group, the median house price in the city is roughly $50k less today than it was just six months ago. That is a significant drop which leaves many negatively and highly geared investors who bought properties in the last six months with interest-only financing in a seriously challenging predicament should the housing market not recover. ...
First-time buyers would benefit from Brexit, says Moody's image
Source : Guardian [Read Article] Thursday 19th of May 2016 07:16:05 AM
....The agency said that should a vote to leave the EU have a bigger negative impact on the UK economy than it is expecting, mortgage arrears would increase among self employed borrowers. “The highest risk would apply to those borrowers with additional risk characteristics such as poor payment history, high loan-to-value or interest-only features,” Moody’s said. ...
More people using equity release to repay interest-only mortgages image
Source : Guardian [Read Article] Wednesday 11th of May 2016 12:25:05 PM
. Growing numbers of people with maturing interest-only mortgages are raiding the equity in their homes to pay off the debt, figures reveal. ...
Older homeowners locked out of mortgages offered reprieve  image
Source : Daily Express [Read Article] Wednesday 11th of May 2016 08:54:00 AM
....”. Hundreds of thousands of homeowners with interest-only mortgages are reaching retirement with unpaid debt and Hollingworth says lenders could help by allowing them to stretch repayments over a longer term. ...
Is a remortgage or second charge mortgage right for home improvements? image
.... “For example, borrowers with a super-low lifetime base rate tracker may potentially lose this rate if they remortgage, so they may prefer a second charge to run alongside it. ” The same might apply to people with interest-only deals. ...
New warning for landlords as major lender tightens borrowing rules image
Source : Daily Express [Read Article] Friday 29th of April 2016 01:11:00 PM
....Nottingham Building Society also increased its rental calculations earlier this week. Mr Harris added: "Similar to interest-only lending in the years after the crunch, it is likely that other buy-to-let lenders will follow suit in a domino effect. ...
Older homeowners unlocked £393m from properties in early 2016 image
Source : Guardian [Read Article] Wednesday 20th of April 2016 11:01:33 PM
....Figures from the specialist advice company Key Retirement show that almost one in three equity release customers used money to clear debts on credit cards, loans and mortgages. Borrowers who had taken out interest-only mortgages in the past and have found themselves unable to move to another mainstream lender are among those turning to equity release loans, the company said. ...
Thought you were too old to get a mortgage? Now you can have one at 95 image
Source : Guardian [Read Article] Saturday 16th of April 2016 06:00:11 AM
....The offering from Hodge Lifetime – which specialises in equity release and annuities – is currently available through selected mortgage brokers ahead of a wider launch this summer. This is a standard residential mortgage, albeit an “interest-only” one, that’s available for house purchase or remortgage, and which can also be used to fund home improvements or consolidate existing debts. ...
Is the fear of a financial education widening the wealth gap in America? image
....Related: Tax return headaches: there are ways to make filing less of a chore. Ideally, by the time they graduate high school, young adults should be skeptics about offers that seem too good to be true, like those interest-only mortgages. ...
Interest-only time bomb is ticking: Defuse mortgage worries with an equity release plan image
. Last year Citizens Advice warned that 934,000 homeowners who opted for interest-only mortgages have no way of paying off their loan at the end of its term. ...
Jailed trader claimed legal-fees loan was for gardening, court is told image
Source : Guardian [Read Article] Tuesday 15th of March 2016 06:15:39 PM
.... The case is likely to hinge on how much of those bonuses the court deems were because of illegal activity. On the second day of the five-day confiscation of funds hearing, Parroy said Hayes and Tighe applied for a £325,000 interest-only mortgage on the Old Rectory in April 2013, more than a year after he was arrested in December 2011. ...
Interest-only 'prisoners' growing as borrowers refused new mortgages image
Source : Daily Express [Read Article] Thursday 25th of February 2016 04:25:00 PM
....More borrowers with outstanding loans are finding they are locked out of the mortgage market, after breaching criteria that was tightened in 2014. It's thought the amount of 'interest-only prisoners' could surge this year as hundreds of thousands of loans start to reach the end of their term. ...
We want to buy a second property, but can we let out our current home? image
Source : Guardian [Read Article] Thursday 25th of February 2016 07:00:26 AM
.... And if a valuation agreed with you about the monthly rent of £1,500, you would also easily meet the requirement for the monthly rent to be at least 125% times the amount of the monthly mortgage payment. That assumes either a 25-year repayment or interest-only mortgage with an interest rate of 3. ...
Mortgage approvals slow to seven-month low, as house price growth levels off image
Source : Telegraph [Read Article] Wednesday 27th of January 2016 10:57:02 AM
.... Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "The biggest issue for many is actually qualifying for one of these great mortgage deals. Tighter affordability criteria as a result of the Mortgage Market Review mean certain groups are finding it hard, such as older borrowers, the self-employed and those requiring interest-only mortgages. ...
If rates stay low, would I profit from a 'tracker' mortgage?  image
Source : Telegraph [Read Article] Wednesday 27th of January 2016 09:58:05 AM
....19pc with a £995 fee. The total interest-only cost of the mortgage over the fixed term is £27,384. ...
Shawbrook bank to launch interest-only mortgages for pensioners image
Source : Telegraph [Read Article] Saturday 23rd of January 2016 07:00:33 PM
. Challenger Bank Shawbrook wants to re-boot the interest-only mortgage market with new loans for pensioners, after a regulatory crackdown which almost wiped out the once-popular products. ...
Quarter of first-time buyers opt for 35-year mortgages to get on ladder image
Source : Guardian [Read Article] Monday 11th of January 2016 12:01:32 AM
....David Hollingworth of mortgage brokers London & Country said first-time buyers were having to find larger deposits to bridge the gap between the mortgages they could afford on their earnings and increasing house prices. “While it sounds like a bad thing to do we should remember that in the past some first-time buyers were taking out interest-only mortgages without repayment vehicles to reduce their monthly costs, thinking they would worry about it later – it has to be better to take out a repayment mortgage over a longer time,” he said. ...
Landlords to launch legal challenge to George Osborne's tax relief changes image
Source : Guardian [Read Article] Sunday 27th of December 2015 04:18:43 PM
.... It said it is reviewing the lending criteria adopted by firms and stands “ready to take action”. Landlords are currently able to buy houses using cheap interest-only mortgages, while first time buyers are required to buy using more expensive repayment loans. ...
I saved readers £500,000 in 2015 - and these were the worst firms image
Source : Telegraph [Read Article] Saturday 26th of December 2015 08:24:47 AM
.... Among those for whom mortgage lending criteria were a real worry were Stephen McDonagh and Catherine Walter. Barclays would not let them transfer their existing interest-only mortgage to another property. ...
'Divorce mortgages' cash in on Christmas bust-ups image
Source : Telegraph [Read Article] Saturday 26th of December 2015 08:12:55 AM
.... She bought a £210,000 house with her husband in 2006 with £189,000 that she raised through the sale of her previous property. They took out a joint interest-only mortgage for £30,000, with her £200,000 private pension as the repayment vehicle. ...
Bank of England to be given powers to rein in buy-to-let market image
Source : Guardian [Read Article] Thursday 17th of December 2015 04:17:21 PM
....It has not yet attempted to intervene in the buy-to-let market but wants to have the tools ready should it decide to act. Landlords tend to take out interest-only mortgages – 85% of new buy-to-let mortgages in the second quarter of 2015 were interest only, up from 77% in 2007 – and the Bank fears they may be more likely to sell up if they run into payment difficulties, potentially bringing a flood of properties on to the market in a short time. ...
Bank of England set to clampdown on landlord mortgages in 2016 image
Source : Daily Express [Read Article] Wednesday 16th of December 2015 12:55:00 PM
....Mortgage lending for rental properties is set to become stricter in 2016 with the criteria for prospective borrowers tightened by the Bank of England. Under new conditions, landlords are expected to have to prove rent can make up more of the mortgage repayments and costs and access to interest-only loans may be curtailed. ...
Mapped: where buy-to-let landlords are making the most lucrative returns from tenants image
.... . Landlords on interest-only loans, where the capital sum is not repaid, enjoy lower monthly outgoings than those who repay both interest and capital. ...
The complicated business of house buying when you're disabled image
Source : BBC [Read Article] Monday 7th of December 2015 01:24:07 AM
.... They're both disabled and unable to work, but managed to make the purchase using a scheme called HOLD, which enables disabled people to buy through shared ownership - they own a portion of the house, and a housing association owns the rest. Each month, they pay a combination of interest-only mortgage, and rent. ...
How long will the buy-to-let boom last? image
Source : Guardian [Read Article] Wednesday 4th of November 2015 12:46:53 PM
.... In September it said that the rapid growth in popularity of buy-to-let could amplify sudden price moves, ultimately affecting market stability. For example, a large fall in property prices would hit buy-to-let landlords with interest-only deals, possibly resulting in a dash for the exit and further price drops. ...
The charts that show it's not THAT hard for first-time buyers image
Source : Telegraph [Read Article] Monday 2nd of November 2015 08:18:02 AM
.... . David Black, a financial specialist at DJB research, said: “Ever higher property prices, difficulties in saving up adequate deposits, higher interest rates on low equity levels, scarcity of interest-only mortgages and insufficient house building are all reasons that hinder those hoping to jump on the property ladder. ...
'Halifax extended my entire mortgage without my permission'  image
Source : Telegraph [Read Article] Monday 26th of October 2015 08:00:57 AM
.... . For eases’ sake, Cheryl asked for the repayments to be scheduled to end along with the interest-only part of her mortgage in 2014. ...
We want to extend the terms of our interest-only mortgage image
Source : Guardian [Read Article] Thursday 22nd of October 2015 06:00:03 AM
....However, if the money from the inheritance is potential because your husband’s mother is still alive – and so the money is not actually available for spending – it has no effect whatsoever on your ability to extend your mortgage term by five years. What may make it very likely that your lender will agree to a five-year extension is guidance from the Financial Conduct Authority (FCA), which says that it expects lenders to deal fairly with interest-only mortgage customers – such as yourselves – who risk being unable to pay their outstanding loan at maturity (without selling up). ...
Buy-to-let in figures: exactly how interest rate rises will hit returns image
Source : Telegraph [Read Article] Tuesday 20th of October 2015 09:34:33 AM
.... . Because most buy-to-let mortgages are interest-only, this means the rent needs to completely cover the mortgage interest, plus a 25pc "buffer". ...
'My grown-up sons cost me £15,600 per year - how can I retire?' image
Source : Telegraph [Read Article] Friday 16th of October 2015 07:00:55 AM
.... The other step to improve his retirement is to pay off his mortgage. It's not clear whether it is interest-only or repayment, however David should ensure this is paid off before retirement, not least because equity release might provide some form of quasi-income in retirement. ...
10,000 buy-to-let investors confess to £50m of unpaid tax image
Source : Telegraph [Read Article] Wednesday 14th of October 2015 02:19:13 PM
.... • Do buy-to-let investors REALLY have a tax advantage over first-time buyers? . Your buy-to-let earns £20,000 a year and the interest-only mortgage costs £13,000 a year. ...
Interest-only mortgages are back, but you have to be wealthy to get one image
Source : Guardian [Read Article] Monday 12th of October 2015 05:59:09 AM
. A flurry of lenders have returned to the interest-only mortgage market, but the move is unlikely to help homeowners who already rely on the controversial loans to ease their cashflow problems. ...
First-time buyers opt for 40-year mortgages to get on property ladder image
Source : Guardian [Read Article] Friday 9th of October 2015 02:35:37 PM
....The Council of Mortgage Lenders said the proportion of borrowers taking out loans in excess of 25 years had doubled in the past five years, to about a third of all mortgages. After the credit crunch, cheap “interest-only” mortgages were in effect banned by regulators, so mortgage brokers have instead advised buyers to stretch their repayment terms. ...
Britain's super-rich cash in on low interest rates with £1m mortgages image
Source : Guardian [Read Article] Friday 2nd of October 2015 02:22:39 PM
.... HSBC, Credit Suisse, Barclays, Coutts and JP Morgan were the next biggest lenders. While average earners have, since the financial crisis, been forced to take out repayment mortgages, the wealthy tend to be offered lower-cost, interest-only deals, with privately negotiated rates. ...
China and buy-to-let biggest threats to British economy, says Bank of England image
Source : Daily Express [Read Article] Friday 25th of September 2015 03:19:00 PM
....The committee also stressed concerns that the huge increase in landlord borrowers could trigger another credit crunch and market crash if the sector were to go through a downturn. The risk of landlord borrowers is heightened as many loans are given on an interest-only basis, according to the FPC. ...
Bank of England puts buy-to-let under scrutiny image
Source : Guardian [Read Article] Friday 25th of September 2015 10:13:57 AM
.... It is commissioning analysis on such contagion and impact of computer trading strategies. In its quarterly update on potential risks to the financial markets, the bank said it was not taking any immediate action to cool the buy-to-let market, where the mortgages are usually riskier interest-only loans. ...
Banks slash another 300,000 interest-only mortgages  image
Source : Telegraph [Read Article] Wednesday 23rd of September 2015 04:15:23 AM
. Banks and building societies cut another 300,000 interest-only loans from their books last year, industry figures show, as the sector acts to calm regulators' fears that there are too many customers who do not know how they will pay back the loans at the end of the term. ...
Interest-only mortgage numbers falling image
Source : BBC [Read Article] Tuesday 22nd of September 2015 03:07:00 PM
. The number of outstanding interest-only mortgages is falling but more work is needed to ensure people are not left unable to pay, a lenders' group says. ...

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