At the same time, we know that interest-only loans
can fulfill the mortgage needs of many of our customers.
04million interest-only loans
without repayment plans will mature.
But DeAnne Julius - a founder member of the Bank of England's Monetary Policy Committee - doesn't agree and argues that interest-only loans
can "make sense for certain people at certain times in their lives".
It also states that first-time buyers, who face some of the most acute affordability problems, are less likely than other borrowers to take out interest-only loans
(17% of first-time buyers choose an interest-only mortgage, compared with 25% of home movers).
allow buyers to lower their mortgage payments by paying the interest on the loan for a period of three, five, seven, or 10 years.
Since interest-only loans
have a few years at the beginning when the borrower pays only interest and then begins paying on the principal, the monthly payment becomes much larger after a few years.
MyMortgageDirect said increasing numbers of borrowers had started taking out interest-only loans
following recent rises in the Bank of England base rate, but the majority did not have an investment policy to pay off the loan.
We also offer interest-only loans
and bridge loans, which help homeowners close on a new home even if their existing residence has not yet been sold.
CMBS is expected to top $200 billion in 2006, though transactions securitized this year will be more sensitive to future economic downturns due to the higher concentration of more volatile property types, interest-only loans
and the more competitive lending environment than other CMBS vintages, according to Fitch Ratings in its Global Structured Finance Outlook report.
He adds that the mortgages can also be amortized for 20, 30, or 40 years instead of offered as interest-only loans
Only six out of the top 20 lenders could tell how their borrowers are planning to repay interest-only loans
In fact, interest-only loans
now make up almost 50 percent of the total share of mortgages in major competitive housing markets like San Diego, Atlanta and San Francisco.