Caution urged on interest-only mortgages
High-earning professionals should take their time before committing to a new mortgage, it has been suggested.
Barney McCarthy, editor of independent advice website YourMortgage.co.uk, said Britons who are worried about their repayments should speak to their mortgage provider as soon as possible, but added that it would be simpler if borrowers hadn't taken out the mortgage in the first place.
Borrowers shouldn't take out an interest-only mortgage if they are worried about affordability, Mr McCarthy advised.
He added that Britons are not so obsessed with property investment that they would rush into a deal without thinking it through, indicating that consumers have time to plan their mortgage finance.
"They are not going to rush into it before they are ready so you are better off saving for a better deposit and maybe take out a more conventional mortgage," Mr McCarthy said.
According to research by LV=, almost half of the UK's 2.9 million interest-only mortgages have no specified investment vehicle in place to pay off capital on the loan.
To book your free initial consultation with mortgages for professionalsclick here.
Barney McCarthy, editor of independent advice website YourMortgage.co.uk, said Britons who are worried about their repayments should speak to their mortgage provider as soon as possible, but added that it would be simpler if borrowers hadn't taken out the mortgage in the first place.
Borrowers shouldn't take out an interest-only mortgage if they are worried about affordability, Mr McCarthy advised.
He added that Britons are not so obsessed with property investment that they would rush into a deal without thinking it through, indicating that consumers have time to plan their mortgage finance.
"They are not going to rush into it before they are ready so you are better off saving for a better deposit and maybe take out a more conventional mortgage," Mr McCarthy said.
According to research by LV=, almost half of the UK's 2.9 million interest-only mortgages have no specified investment vehicle in place to pay off capital on the loan.
To book your free initial consultation with mortgages for professionalsclick here.
