Latest News

GE2019 - How do the manifestos match?

10 December 2019

Before the political parties finalised their manifestos for the General Election on 12 December, Propertymark published its own ‘manifesto’ calling on the new Government to regulate and reform the housing sector. How do the major parties’ manifestoes meet Propertymark’s calls on the issues the property industry faces? Read More...

An interesting year for the housing market – 2019 trends

04 December 2019

Propertymark has analysed its sales and lettings data to reveal trends from the year. Supply has dropped considerably over the past decade while demand has increased, but year-on-year has remained relatively stable in the face of Brexit uncertainty. Read More...

The Cloud

04 December 2019

You will often hear technology companies refer to ‘the cloud’, whether it be cloud computing, cloud storage or even cloud software, but what does the cloud really mean? Ross Jezzard ARLA Propertymark Board Member, takes a look. 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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