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Mortgage Guide
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Types Of Mortgage
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What's the future for interest-only
mortgages?

Almost a third of new mortgages taken out by first-time buyers and remortgagers are now interest-only mortgages, and the vast majority are not linked to a specified repayment vehicle.

Experts are increasingly concerned this could lead to a fresh scandal on the scale of the endowment mortgages debacle, with many people unable to repay the capital element of their loan at the end of their mortgage term.

As a result, they could be forced to sell up or face repossession by their mortgage lender.

There are hopes that the Financial Services Authority (FSA), which regulates mortgages, will step in with new rules to prevent this, but it could be years before anything happens.

In the meantime, it remains each individual borrower's responsibility to ensure they understand the costs and risks of what they're getting into.

For more about this, read The true cost of an interest-only mortgage.


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To read more on this subject please see the list below or your mortgage guide or your home buying guide

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The two major varieties:

Repayment mortgages

Interest only mortgages

Then mix in the various:

Interest repayment arrangements

Finally, to cover all the different types there's a

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