Interest-only mortgages crackdown begins

williamD1964

tranfered to an interest only mortgage last year so I can concetrate on getting rid of my CC debt. Will this effect me in the long run? They say that they plan to phase out interest only, do they mean for those that already have one or for those that want one in the future?
Really concerned me.
any thoughts greatfully received

FraudBuster

A new lending drought by banks who hand out 'cheap' mortgages to cash-strapped homeowners and first-time buyers was brewing yesterday.
The dramatic move was triggered by Britain's biggest mortgage lender beginning a major crackdown on interest-only mortgages.
Experts warned tonight that the move by Lloyds Banking Group, owner of Halifax, will prompt copycat changes by its lending rivals.


Read more: http://www.dailymail.co.uk/news/article-1278177/First-time-buyers-hit-fresh-lending-drought-banks-clamp-mortgages.html#ixzz0nwBozT6x

williamD1964

bumped for anyone esle to add their thoughts

dunstonh

Interest only mortgages have been harder to get for a few years now. Increasingly lenders have stopped doing them. I'm surprised at the media article as this is nothing new. Lloyds hit the criteria for doing interest only mortgages over a year ago.

It wont affect existing borrowers with their current lender but it will hit new borrowers and remortgages.