Fundublog Loans - Everything one needs to know

Abbey today become the first major high street lender to clamp down on low-cost “interest-only” mortgages by reducing the maximum loan for such deals to as little as 50% of the property’s value.

Growing numbers of borrowers have turned to interest-only loans as a way of affording high property prices. Customers pay interest but none of the capital debt.

In late 2006 the Financial Services Authority warned that thousands of homebuyers taking out these mortgages could be putting themselves at risk of repossession because they have little or no idea how they will pay back the loan. Read more
Courtesy: www.guardian.co.uk

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