Around 64% of advisers say they have seen a rise in customers choosing interest-only mortgages in the last year, a Mortgage Solutions poll has found.
According to a Mortgage Solutions poll, approximately 46% of advisers surveyed said that they had seen a rise in customers opting for interest-only mortgages to some extent, with a further 18% saying they had seen an increase to a large extent.
Almost 36% of advisers said that they had not seen an increase in customers going for interest-only mortgages.
Interest-only mortgages allow borrowers to pay off just the interest on borrowing each month, as opposed to the capital, with the full amount paid back at the end of the term. This means monthly payments can be lower.
UK Finance figures show that there were 702,000 pure interest-only homeowner mortgages outstanding at the end of 2022, which is 6.9% lower than 2021.
However, with the introduction of the Mortgage Charter measures, which allows a customer to temporarily switch to interest-only payments for six months could lead to heightened interest.
The cost of living crisis has also meant there have been more enquiries for this kind of product and the product is especially popular with buy-to-let landlords.
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Link to Original Article: Mortgage Solutions - Two thirds of financial advisers see rise in interest only mortgages poll results