Interest-only

With an interest-only mortgage, the money you pay your lender every month consists purely of the interest you owe, and you do not pay off any of the original debt you borrowed.This makes them look cheaper than repayment-type arrangements, hance they have historically been very attractive for first-time buyers.

However, you are also supposed to save monthly into some form of investment in order to pay off that capital at the end of the mortgage term. Note that interest-only mortgages are becoming harder to get hold of. Click here for more details.

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Third of homeowners fear rate rise financial difficulties

A third of homeowners fear they will be forced into financial difficulties when interest rates begin to rise, a survey has found.

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Clydesdale raises interest-only LTV to 75%

Clydesdale Bank has increased its interest-only loan-to-value to 75% for loans which use the sale of the property or a cash lump sum as an exit strategy.

Mark Carney

Carney: End of QE era poses 'great risk' to stability

Bank of England governor Mark Carney has warned on the complications of withdrawing monetary stimulus - just hours before the US Federal Reserve may announce a tapering of its own asset purchase programme.

Warning sign against cloud backdrop

Woolwich ditches minimum loan for interest-only

Woolwich will drop its minimum loan of £300,000 for interest-only mortgages from June.

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Interest-only borrowers turned down for repayment loans

Complaints data out today from the Ombudsman illustrate the difficulties facing interest-only borrowers.

HSBC

HSBC lends £2.8bn of mortgages in Q1

HSBC advanced £2.8bn in new gross mortgage lending in the first quarter of 2013 as profits doubled, according to the global bank’s interim results.

Martin Wheatley

Lender withdrawals from interest-only may have been hasty

The withdrawal of lenders offering interest-only mortgages may limit consumer choice.

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Too much regulation scares lenders

Over-regulation could trigger a 'precipitous' withdrawal of lenders from interest-only and other mortgage products.

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HSBC restricts interest-only mortgages to wealthy

HSBC will stop offering interest-only mortgages to all but high net worth customers from 25th March.

Taking an axe to budgets

Accord Mortgages axes interest-only

Accord Mortgages has announced it is to withdraw its range of residential interest-only mortgages on Sunday.

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Equity release could solve interest-only headache - Nigel Waterson

Interest-only borrowers and elderly homeowners needing long-term care will drive growth in the equity release market, the Equity Release Council chairman has said.

newcastle

Newcastle Building Society withdraws interest-only mortgages

Newcastle Building Society has withdrawn its interest-only mortgages with immediate effect.

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Hinckley & Rugby launches interest-only mortgage

Hinckley & Rugby Building Society has launched an interest-only mortgage, available from tomorrow.

first-time buyer

First-time buyer lending up

The number of first-time buyers taking out a mortgage in October increased by 20%.

home sweet home

Brits still dream of homeownership

Brits still aspire to be a nation of homeowners according to Clydesdale and Yorkshire Banks.

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Equity release market grows 26% in H1

Equity released by homeowners rose by 26% to £641.8m in H1 2014 compared to the same period last year, analysis from provider Key Retirement Solutions has shown.

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