Interest-only mortgages 'need urgent review'
A leading property expert has called for people who have taken out interest-only mortgages to urgently review their repayment situation.
Legal & General's head of products Martyn Smith suggested an interest-only mortgage is the equivalent to renting a house, only with the bank as your landlord, Mortgage Strategy reported.
Mr Smith admitted that while the property will increase in value over time, the issue of paying off the debt of the loan remains an issue that many customers might not appreciate.
He added that borrowers must "wean themselves off" such deals and find ways to pay some form of the debt off each year otherwise they risk further difficulties down the line.
While many people may be deterred by continuing changes to the mortgage market and a continued lack of viable credit available to house hunters, others could be encouraged to look for property to rent in the London borough of Harrow, or elsewhere in the UK, instead.
By Ben Carter
Published 14th April, 2010
© 2010 Estates IT Limited
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More people may be encouraged to look for property to rent in the London borough of Harrow or elsewhere in the UK, after one of the country's top advisors suggested those on interest-only mortgages urgently needed to review their repayments.