28
Mar
Younger workers 'benefit from interest-only deals'
Interest-only mortgage deals are not all that "extreme" and are a
good option to have for some homebuyers, it has been claimed.
Chief operations manager at Alexander Hall Andy Pratt stated that
these products are useful when mortgages are "less affordable" and
that the circumstances of individual people come into effect.
Such options are necessary for young professionals, he asserted,
people who may start their careers on relatively low salaries but
will be entitled to bonuses later on - something that could help
with payments.
If these choices are included then consumers can feel more in
control, even if it means they may not "beat" the prevailing
interest rate, Mr Pratt remarked.
He commented: "Instead of relying upon the lender to control the
amount that they pay off on 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."
Recent Council of Mortgage Lenders figures have said that the
number of first-time buyers with these deals rose last
year.