Latest News

Speakers confirmed for largest-ever NAEA Propertymark Conference

20 September 2019

The 2020 NAEA Propertymark Conference will be held on Thursday 27 February 2020 in London. The conference is set to be the biggest yet and features a line-up of speakers with both inspirational and practical advice. Read More...

First time buyers hold many misconceptions

19 September 2019

A new study from Santander Mortgages has revealed striking misconceptions and knowledge gaps among aspiring first-time buyers as they prepare to make their most major purchase. Read More...

HMRC highlights money-laundering breaches and penalties

18 September 2019

HMRC’s list of business penalised for breaches of money laundering regulations has been updated. The businesses, which include financial services companies and estate agents, are listed on the gov.uk website detailing breaches that occurred in the 2019-2020 tax year. Read More...

Mortgage advisors indicate refreshed appetite for interest only mortgages

Friday 09 August 2019

Intermediaries say interest only mortgages comprised 20 per cent of new business introduced in the second quarter of 2019, down from a 2007 peak of 28 percent, but significantly higher than five years ago. Repayment mortgages made up almost all the remaining proportion of new business in that time.
The latest numbers, from Paragon’s long-running, quarterly Financial Adviser Confidence Tracking Index (FACT), suggest interest only mortgages continue to offer an effective solution for a substantial proportion of customers where a credible repayment strategy is in place.

Despite the increase in interest only introductions recorded in the latest FACT survey, regulated providers remain focused on reducing the overall number, value and average Loan to Value (LTV) ratio of the UK’s interest only mortgage stock.

John Heron, Managing Director of Mortgages at Paragon said: "While repayment mortgages are now by far the most popular type of mortgage, interest only continues to have an important part to play in the post-MMR environment.
For customers who can demonstrate appropriate provision for paying back the capital, interest only mortgages provide a useful vehicle for controlling costs whilst allowing customers optionality to invest and build capital elsewhere.
Higher LTV requirements and closer scrutiny of repayment plans however mean interest only is now a much smaller part of the overall market.”

 

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