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Sharp rise in interest only mortgage deals reports MMD

Interest only mortgage deals have risen steeply on the back of Bank of England base rate rises says broker My Mortgage Direct.

Managing director Paul Hearnden says if the pattern of interest only arrangements is replicated with other brokers, there could be a major problem building up for millions of UK mortgage holders if borrowers do not consider to back their interest only deals with an alternative long term payment vehicle.

MMD says since the beginning of 2004, 35 per cent of all its clients have opted for interest only mortgage deals.

Hearnden says: “Banks and building societies may well argue that most mortgage are being written on a repayment basis, but brokers now have ewell over 50 per cent of the market. As out data shows, too many homeowners are likely to be vulnerable if their homes do not increase appropriately in value and they have no other means of clearing their debt.”


A move in the wrong direction

I left Barclays just over a year ago having become disillusioned with its steer towards multi-tie. I have always been a believer in true independence, where customers are offered best of market.

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Type: Fixed-rate mortgageMinimum loan: 15,500Maximum loan: Up to 95% of valuation subject to a maximum of 250,000, up to 90% of valuation subject to a maximum of 400,000, up to 85% of valuation subject to a maximum of 500,000, up to 75% of valuation subject to no maximumIncome multiples: Up to 3.5 times principal income […]

Selestia Launches Online Distribution Channel

Selestia has launched an online distribution channel with telephone support to provide alternative access to the Selestia platform for IFAs.Selestia hopes to use Adviser Direct as a means to raise its brand awareness among the wider IFA community. While it remains committed to distribution through regional sales managers, Selestia hopes to appeal to IFAs who […]


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