Enable’s experienced IFA’s are keen to make sure you get the right kind of mortgage for you. Over the years the types and conditions of mortgages have changed with the times. Most home buyers require a mortgage to buy a home and things are changing again. According to some recent statistics from UK Finance the number of interest-only mortgages has nearly halved in the last six years. They say they are down by 46% since 2012.
Overall at the end of 2017, figures say there were more than 1.2 million interest-only mortgages outstanding, a drop of 14.9% over the year. There were also 429,000 partial interest-only homeowner mortgages outstanding at the end of 2017, up slightly by 2.1% over the last 12 months. But the number of interest-only loans at higher (over 75%) loan-to-values had slumped by 13.9% in 2017. These higher loan-to-value ratios mortgages now account for 13% of the total, in comparison to 16% in 2016 and 36% six years ago.
Jackie Bennett, Director of mortgages at UK Finance, said: “the number of outstanding interest-only loans has halved in the past six years, with a particularly steep decline in higher loan-to-value mortgages.” “Many borrowers continue to redeem ahead of schedule or switch to a repayment mortgage.” Currently, there are 1.7 million outstanding interest-only mortgages (including partial interest-only), with the total value of the interest-only mortgage book standing at £250 billion, down 37% in the last six years.
Lots more work needs to be done over the coming years to make sure that all borrowers have viable repayment plans in place. Many are reluctant to engage in the mortgage changes it can be low down the list for many but reviewing that you have the right mortgage for you is always worth it. Enable’s IFAs in Bishops Stortford can help you look at your options.
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE.