Interest Only Mortgage Now More Difficult To Access

According to Zoopla, people now find it more difficult to opt for an interest mortgage too. Owing to tough state markets opting for an interest mortgage as now a tougher job, compared to acquiring a normal mortgage.

When it comes to borrowing a 75% mortgage, the lenders have been seen show much less interest when compared to years earlier. Ray Boulger, senior technical manager at John Charcol, said that "hardly any" lenders are currently likely to offer an interest-only mortgage if people want to borrow more than 75 per cent.

He especially gave his comments about the survey by the Connells, which showed that the housing market remained stable in April, with 24 per cent more residential mortgage valuations conducted than in April 2010 despite it being a shorter working month.

"If you are looking to move and your previous mortgage was interest-only and you want to keep it that way because you have got various plans in place to pay the mortgage off or are looking to remortgage, that can be a problem," explained Ray Boulger. Dominik Lipnicki, director at Your Mortgage Decisions, said "It remains very difficult to remortgage unless you have plenty of equity and a spotless credit rating to boot. The fact that the Bank of England interest rate looks unlikely to rise imminently means consumers are not incentivised to source a new deal at the moment."
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