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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.

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.

gavelandscales

Too much regulation scares lenders

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

p4-wallet

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.

waterson-nigel-tory-new

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Newcastle Building Society has withdrawn its interest-only mortgages with immediate effect.

hinckley-and-rugby-logo

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.

percentage

Nationwide to cut interest rates for first-time buyers

Nationwide Building Society will cut the interest rates charged on reduce its 90% loan-to-value (LTV) mortgages by 0.5% to 0.7% tomorrow.

coventry-building-society-logo

Coventry Building Society withdraws interest-only mortgages

Coventry Building Society has announced it will no longer offer interest-only residential mortgages to new borrowers from Monday.

stop-sign

NatWest and RBS stop interest-only lending

NatWest and Royal Bank of Scotland will cease to offer new interest-only mortgages from Monday 3rd December.

home sweet home

Nationwide hits highest lending levels in four years

Nationwide Building Society’s lending to first-time buyers has doubled in the first six months of the financial year and has reached its highest level of lending in four years.

estateagents

London first-time buyer numbers hit 3-year high

The level of first-time buyers in London hit a three-year high in the last quarter, despite the affordability issues faced by many in the Capital.

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