Interest only mortgages have many benefits

There is an increased demand for interest-only mortgages and the benefits of such deals have been highlighted by a leading independent mortgage advisor.

Alexander Hall has pointed out that the deals hold many benefits for young professionals.

The firm admitted that there are dangers associated with the mortgage products but said that borrowers should avoid getting into trouble as long as they are sensible.

Andy Pratt, chief operations manager at the firm, said that the benefits of interest-only mortgages are numerous.

"If you know that you're starting off in a career where the salary is limited to start with but you're going to be coming into some bonuses later on, you have options," he commented.

"As the bonuses or increased salary comes along then you can essentially use what you need to live on and pay off lump sums of the mortgage through what you build up.

"Instead of relying upon the lender to control the amount that they pay offon the loan, some feel quite knowledgeable and confident enough to pay the interest and control for themselves how much of the loan they pay off by doing it in lump sums every two or three years," continued Mr Pratt.

Related Articles

BM Solutions launch new mortgage ratesHBoS close TMBNew offset mortgage rates from CoventryNew Mortgage Rates from Northern RockMortgage Market Slows