Less than 2% of new house purchase loans are now taken out on an interest-only basis
May 16, 2017
News from the CML, Council of Mortgage Lenders, showcase the decline of interest-only mortgages in the UK with now only 2% being them in 2017 which is a fair drop from what was approximately 40% in 2017.
“When we first started to collect this data in 2012, the regulatory concern was that interest-only loans may have less certainty of repayment at the end of term than repayment mortgages, and the size of the interest-only book meant that this could potentially be a large problem.” CML Website.
Full details can be read here: CML Website Interest-Only report.
You May Also Enjoy
Nationwide: Strong end to the year for UK house prices
UK house prices up 4.7% year on year in December Northern regions see higher price growth than southern regions Northern Ireland best performing area for second year running, with prices up 7.1% over 2024 East Anglia weakest performing region, with prices up 0.5% over the year Headlines Dec-24 Nov-24 Monthly Index* 540.8 536.8 Monthly Change*…
Read More 
28.8% of property sales fell through before completion in 2024
The most common reasons for failed sales include the buyer pulling out or failing in an attempt to renegotiate a lower purchase price after a survey (27.3%), the buyer changing their mind and withdrawing from the sale (23.6%), and difficulty getting a mortgage (21.8%). Reasons for failed sales Reason Percentage of failed sales Buyer pulled…
Read More 
Rightmove: Busiest ever Boxing Day as home-hunters get ahead of a 2025 mov
Rightmove has recorded its busiest ever Boxing Day for new seller activity, with a record number of Boxing Day properties listed for sale by agents on the 26th December 2024: The number of new properties coming to the market for sale was 26% higher than Boxing Day 2023 The majority (46%) of homes put up…
Read More 
The Biggest Factors that Reduce Property Value
If you are looking to sell your home, or if you own a number of properties, then you’ll want to make sure that your sale price matches your valuation. With that said, there are a number of factors that might affect this. Underpinning Subsidence can be scary if you’re a homeowner. There’s no doubt that…
Read More 
How to Transition from a Fixed-Term Tenancy to a Periodic Tenancy
Transitioning from a fixed-term tenancy to a periodic tenancy is a common occurrence in the UK rental market. It offers flexibility and convenience for both landlords and tenants by continuing the rental agreement on a rolling basis once the fixed term ends. Whether you’re a landlord managing a property or a tenant seeking clarity, Martin…
Read More 
Housing sales end 2024 on a high, but buyers more cautious about how much to pay for homes as mortgage rates drift higher
Buyers and sellers returned to the market over 2024 building a sales pipeline 30 per cent larger than a year ago with 283,000 homes worth £104bn progressing to a sale in 2025. This is the largest end of year total value for four years. House prices have returned to growth with the average house price…
Read More