Can I get an interest only mortgage?

Many of us think that unless we have access to a "Time Flux Capacitor" then this is a no no. Well, Halifax have clearly been speaking to Dr. Emmett and it looks like we are all going back to meet George, Biff and Lorraine in 1986 with the loosening of their criteria in relation to interest only. For years they have shied away from allowing the sale of your property as a vehicle to repay the mortgage but this week they have changed tack and now allow in certain circumstances the sale of your property as a means to fund the mortgage.

Before you get too carried away however the lenders have not torn up the A-Z on lending and there are still a number of caveats on securing that interest only deal. Times have changed significantly since the "Endowment Debacle" when it was almost impossible to get an interest only deal. There was a deep distrust from both banks and borrowers following the mis selling crisis but since the regulation of mortgage advice the banks have realised that interest only is still a valid way to fund a house purchase.

What the banks need to do along with the those that give mortgage advice for a living is to re-educate the public on the ways of interest only. There is nothing inherently wrong with purchasing a property with an investment backed product so long as it is suitable for the client and the client understand the pitfalls. The problem was that back in the day when interest only was all the rage we were all blinkered into thinking that interest only was the only way and advice was in short supply from many brokers. Mortgages were by and large unregulated and sold by men in white socks and shiny suits who didn't know their arse from their elbow when it came to advising on products. What chance did we have!

These days it is all different and it is all about the advice! So if you would like to have a chat about whether interest only is for you then drop me an e mail and we can discuss the pros and cons.