As lenders raise mortgage rates and tighten criteria for borrowers, the website unbiased.co.uk has gathered advice and tips for consumers on how to navigate the current mortgage market.
Karen Barrett, chief executive at unbiased.co.uk, said: “News last week that the Co-operative Bank became the first big high street lender to pull out of the interest-only mortgage market further reduces the remortgage options available to homeowners with interest-only loans. Several lenders, including Santander and Nationwide, will only lend to homeowners with a deposit, or equity of at least 50%.
“We know from our research that one in seven homeowners with an interest-only mortgage pay off the interest each month but don’t save anything towards paying off their future debt.
“With purse strings tight, it’s understandable many people are trying to keep outgoings low by sticking to interest-only mortgages, but that has the potential for serious problems in the long term.
“It can be overwhelming when trying to navigate a complex market where mortgage deals are more limited and come with stricter lending criteria, so consumers should ensure they are as informed as possible before making their choice. A whole of market mortgage adviser will help you to make the right decisions regarding your mortgage in the context of your current financial situation. To find a whole of market mortgage adviser or an independent financial adviser go to www.unbiased.co.uk and enter your postcode.”