Curiosity-only mortgages have gotten the protect of the wealthy.
Simply over 1,000,000 owners pay some or all of their residential mortgage on an interest-only foundation and most of those can have taken their loans out earlier than the monetary disaster. These offers, the place debtors don’t pay again the steadiness of what they owe, fell massively out of favour within the credit score crunch, however lenders have began providing them once more — to a particular few who’re rich sufficient to qualify.
Banks have grow to be eager to lend to richer owners who wish to borrow cheaply to liberate money for different investments corresponding to shares and shares or second houses.
Document-low rates of interest make it potential to borrow as much as £2 million at lower than