Challenger bank Aldermore is warning of a potential rise in mortgage prisoners, due to lenders pulling out of the interest-only mortgage market.
Many lenders have withdrawn from the interest-only market or have significantly paired back their maximum LTVs following the Mortgage Market Review, which comes into force in April next year. People who were previously on an interest-only mortgage who now wish to remortgage or capital raise, may find themselves trapped if their lender has withdrawn from the market. They will need to move lender as a result. This may necessitate converting to a more expensive capital repayment mortgage.
Integrity IFA Ltd for free mortgage advice in Edinburgh.
