The Co-operative has announced that it is no longer offering interest-only mortgages. This includes new mortgages and remortgages. Only those existing borrowers moving home and not borrowing extra will be able to stay on an interest-only deal.
This follows other lenders who are moving away from these types of loans, putting such conditions on that they will usually exclude first time buyers. An example of this is Santander, who only offers interest-only mortgages to those who have at least a 50% deposit.
James Hillon, head of mortgages at the Co-operative told thisismoney.co.uk:
“What we have seen in house price drops over the last four or five years has in itself given rise to a dawning realisation that you can’t just rely on a rising appreciation in your home”
This news comes as lenders push interest rates up on repayment mortgages. As getting mortgage credit seems to be getting harder, especially for first time buyers, it is possible that movement within the property market may slow over the coming months.
Today’s Conveyancer, bringing you the latest conveyancing news and updates.
