Where appropriate, 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 mortgages can offer a greater deal of flexibility for our clients.
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 justifiable basis for repayment of the loan by the end of the mortgage term.
This means interest only mortgages have become a viable and attractive option for more of our clients. Interest only mortgage products are so-called because the monthly payments do not pay down the outstanding capital balance; they only cover the cost of the interest charged on the mortgage.
Understanding the benefits of interest only mortgages
At LDNfinance, our expert property finance professionals have extensive knowledge of the UK mortgage market. Your dedicated mortgage adviser will explore all of the options available to you, including interest only mortgages, 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 an interest only mortgage
- Have the intention to downsize in the future
- Have the ability to repay an interest only mortgage 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 mortgage adviser will explain the pros and cons of an interest only mortgage to you in plain English and may recommend it to you providing your repayment strategy is sufficient to repay the outstanding balance at the end of the mortgage term.
Let’s discuss your financial position and arrange an interest only mortgage that reduces your repayments in the short term.