Mortgages. An interest only mortgage: it could cost you more Finance Articles | August 16 Women's Asics Gel Lyte III MT Boot Black Australia , 2006 Interest only mortgages may seem like the easy way out, especially if you are a first time buyer. But remain aware that sooner or later you will have to pay it back?all of it.
There are no figures available for the total number of homebuyers with interest-only loans. However, figures for new interest-only house purchase loans have been running at between 10 and 20 per cent for all new first-time buyers over the past 10 years Men's Asics Gel Lyte III MT Boot Black White Australia , and roughly the same for other homebuyers.
With more than half of all mortgages now arranged through an intermediary, mortgage brokers could be in the firing line for claims of mis-selling if the homebuyer's loan reaches maturity and there is not enough cash to pay off the loan.
The CML is keeping close tabs on the situation and has set up a shortfalls working group to look into ways of encouraging consumers to act now to address any shortfall on interest-only mortgages."