BANKING AND CREDIT NEWS-June 12, 2019--Australian banks to face stricter capital rules when issuing
interest-only loansM2 EQUITYBITES-June 12, 2019--Australian banks to face stricter capital rules when issuing
interest-only loansGlobal Banking News-June 12, 2019--Australian banks to face stricter capital rules when issuing
interest-only loansAnnounced in April 2017, the review was a targeted industry surveillance examining whether lenders and mortgage brokers are inappropriately recommending more expensive
interest-only loans.
In the next eight years, 1.04 million
interest-only loans without repayment plans will mature.
In the next eight years, 1.04million
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).
When Lawrence Ragland was looking to expand his real estate holdings, he used funds he obtained from a cash-out option on a five-year
interest-only loan.
Interest-only loans allow buyers to lower their mortgage payments by paying the interest on the loan for a period of three, five, seven, or 10 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."
Global Banking News-May 31, 2017--Teachers Mutual Bank makes changes to
interest-only loans
