26
Aug
Quarter of mortgage holders on interest-only deals
Almost a quarter of UK mortgage holders are currently on
interest-only deals, according to a report.
Analysis from price comparison site moneysupermarket.com shows that
borrowers could save around £40,000 over the life of their
mortgage by switching to capital repayments.
Hannah Skenfield, mortgage channel manager at moneysupermarket.com,
said that it is encouraging to see lenders restricting access to
interest-only mortgages, but the fact that 23 per cent of mortgage
holders are still only repaying interest on their mortgage debt is
"deeply concerning".
"Unfortunately, those currently on interest-only deals are not
paying off any of their capital and are setting themselves up for a
bill at the end of the life of their mortgage," she said.
The news comes after the Bank of England announced earlier this
month that August would be the fifth consecutive month that the
base rate is kept at 0.5 per cent, having last been cut in
March.
