Interest only mortgages have become a viable and attractive option for more of our clients. The monthly payments for interest only products cover the cost of the interest rate charged, not the outstanding capital balance.
At LDNfinance, our residential mortgage advisers work with our clients to assess their options for an interest only mortgage, whilst making them fully aware of the associated risks. In some cases, interest only can offer a greater deal of flexibility.
The Mortgage Market Review (MMR) has given mortgage lenders greater clarity and flexibility to increase the availability of interest only mortgages, providing there is an accepted and reasonable basis for repayment of the loan by the end of the mortgage term.
Understanding the benefits of interest only mortgages
Our expert property finance professionals have extensive knowledge of the UK financial market. Your dedicated adviser will explore all of the options available to you, including the option of interest only, particularly if your personal and financial circumstances meet any of the following criteria:
- Receive large bonus payments
- Own other assets which could be used to repay interest only
- Have the intention to downsize in the future
- Have the ability to repay an interest only by other means
- Classed as a High Net Worth Individual
- Operate on a self-employed basis
- Classed as an older borrower
Your independent and impartial LDNfinance adviser will explain the pros and cons of an interest only mortgage to you, and aim to explain everything in plain English. We may recommend interest only to you if your repayment plans and strategy are sufficient enough to repay the outstanding balance at the end of the term, and you can afford the monthly repayments.
Let’s discuss your financial position and arrange an interest only mortgage that reduces your repayments in the short term.