Last week Brian Gibson gave first-time buyers some good news with Woolwich’s new guarantor-style 5% deposit mortgage. This week it’s the turn of interest-only products to make a comeback.
Of sorts. Clydesdale bank has just launched a new interest-only mortgage that reverts to repayment terms after three years. In other words, you get a short time to get the mortgage on an interest-only basis (at a fixed rate). After that you’ll be switched to standard variable rate repayments, currently at 4.95%.
It is good to see some lenders offering innovation around this area. Virtually all lenders have pulled out of the interest-only market (or placed such difficult conditions that is almost impossible for the criteria to be met). But there is still a need for some clients to have this option.
Crucially, the Clydesdale mortgage will not be available via their branches – only by brokers. So contact Limetree if you are interested. We’ll help you to find out if it would work for your situation.