Tuesday, October 20, 2009
Huge increase over five years in quantity of interest-only mortgages
Forget affordability, income multiples and self cert, interest-only mortgages are the real elephant in the room of the UK property market. Hidden deep in the FSA's mortgage market review, which has been grabbing the headlines, a chart shows the rise of interest-only mortgages as house prices boomed from 2002 to 2007, from 13% of those taken out to 33%. The FSA report highlights that 'the vast majority had no repayment vehicle specified'.