Latest News

A thirst to get qualified at the Propertymark Wales National Conference

18 October 2019

With so much change for agents in Wales in 2019, the delegates at the Propertymark Wales National Conference heard a legislative reminder on anti-money laundering, referral fees and the regulation of the industry. Read More...

Homeowners more than £350k better off than private renters over 30 years

18 October 2019

The average homeowner in the UK could be £352,500 better off than the average private renter over the next 30 years, new research from the Intermediary Mortgage Lenders Association (IMLA) says. However, the report also outlines the financial and social barriers that younger people face in becoming homeowners and suggest that rising house prices may not be the main cause. Read More...

Changes to shared ownership announced

18 October 2019

Plans for a new national model for shared ownership will help thousands of lower earners step onto the housing ladder. A package of measures to help people on lower incomes get onto the housing ladder have been confirmed by Housing Secretary Robert Jenrick. 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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