Concerns over growth of Interest Only Mortgages

Recently the number of interest only mortgages have increased to 16% of total mortgages. The FSA is increasinly worried as the calculate that a significant % of people do not have any long term plan to pay back their mortgage capital. For first time buyers the number choosing interest only mortgages has increased to 34%.

Experts argue this could also increase house price volatility. People with interest only mortgages face a proportionally higher increase when interest rates rise.

Interest only mortgages Skyrocket