28 Mar

Younger workers 'benefit from interest-only deals'

Younger workers 'benefit from interest-only deals'

Interest-only mortgage deals are not all that "extreme" and are a good option to have for some homebuyers, it has been claimed.

Chief operations manager at Alexander Hall Andy Pratt stated that these products are useful when mortgages are "less affordable" and that the circumstances of individual people come into effect.

Such options are necessary for young professionals, he asserted, people who may start their careers on relatively low salaries but will be entitled to bonuses later on - something that could help with payments.

If these choices are included then consumers can feel more in control, even if it means they may not "beat" the prevailing interest rate, Mr Pratt remarked.

He commented: "Instead of relying upon the lender to control the amount that they pay off on the loan, some feel quite knowledgeable and confident enough to pay the interest and control for themselves how much of the loan they pay off."

Recent Council of Mortgage Lenders figures have said that the number of first-time buyers with these deals rose last year.ADNFCR-1222-ID-18527566-ADNFCR

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