Interest-only mortgages declining but may see a resurgence

The era of more prudent mortgage lending since the Global Financial Crisis means that interest-only mortgages have become a much smaller proportion of new mortgage lending.

In 2007 over 40% of new mortgage lending was on an interest-only basis. On the latest data, interest-only is below 8%.
This means that in times of stretched budgets there is an extra lever to pull. Mortgage lenders are being encouraged to be flexible and consider adjustments to the existing mortgage terms.
Temporarily switching to an interest-only mortgage would save £289 pcm, based on the average UK first-time buyer price of £218,000, a Loan-to-Value of 85%, 25-year term and a 5.5% mortgage rate.
The savings will be more in more expensive markets. The saving on the average London first-time buyer price (£435,000) with the same mortgage terms would be £576 a month. Source: #Dataloft, FCA. Data to end of Q1 2023. Disclaimer: The above is for information only. Independent regulated financial advice should always be sought when considering mortgage matters.

Get in touch with us

First Name

Last Name

Mobile Phone

Your Email Address

Are you looking to

Buy

Sell

Rent

Let

Please enter message here

Please confirm that it is okay for us to contact you about this information as well as products and services. (You will always be given the right to unsubscribe at any point in the future)

Confirm

Selling Your Home This Autumn: Tips to Attract Buyers

Autumn may not be the first season that comes to mind when people think about moving, but it can be a surprisingly strong time to sell. Buyers who are still active at this stage of the year tend to be serious about completing before Christmas or the new year. With the right preparation, your home can stand out and attract motivated buyers even as the nights draw in.

CLICK HERE >

Why Serious Buyers Register Early

If you’re planning to buy a home soon, you might assume the best place to start is on the property portals, Rightmove, Zoopla, or OnTheMarket. But the truth is, the savviest buyers are seeing homes long before they ever appear online. Here’s why registering with an agent puts you one step ahead.

CLICK HERE >

Selling your home for the first time? What to ask your estate agent before you start

Selling for the first time can feel overwhelming. Everyone has advice, most of it conflicting. Here are the key questions to ask every estate agent, plus the step-by-step process you’ll go through to launch your home the right way.

CLICK HERE >

Looking to Move in 2026? What the Budget Means for You

The November Budget introduces new tax measures that will influence affordability, demand and long-term property decisions. With higher household costs and a new levy on homes over £2 million, buyers and sellers will need a clearer strategy as they plan their next steps.

CLICK HERE >