The Observer - Interest-only mortgages are back, but you have to be wealthy to get one
A flurry of lenders have returned to the interest-only mortgage market, but the move is unlikely to help homeowners who already rely on the controversial loans to ease their cashflow problems.
“Lenders are clearly targeting borrowers that fit within strict criteria,” says Aaron Strutt of broker Trinity Financial. “They want higher earners with large deposits, as well as a credible plan to repay the mortgage.
“If you have a credible plan to repay the mortgage and a good salary, interest-only certainly has its place. Problems start when borrowers don’t switch to capital repayment or don’t think about repaying the debt.”
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