With a growing number of borrowers seeking new ways to lower their monthly expenditure, it was revealed (1) that the number of searches relating to interest-only mortgages had skyrocketed by 53%.
Interest spikes in interest-only
Indeed, the research showed that ‘interest-only mortgages’ had become the most common mortgage-related search term, attracting more interest than other staples like ‘buy-to-let’ and ‘fixed-term.’
Analysts suggested that the jump could be linked to the Mortgage Charter launched in June to support homeowners. This means that many borrowers now have the choice to swap to an interest-only mortgage for up to six months, if needed.
It is important to remember that help is available if you are struggling to keep up with repayments.
(1) L&G, 2023
🚨 Data accurate as of the date of publication – 11.12.2023
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q4 2023
