"While the number of interest-only mortgages have been falling in recent years, we firmly believe they are an important tool that give homeowners greater control over their finances"
- Rachael Hunnisett, director of April Mortgages
Longer-term lender, April Mortgages, has launched a new range of residential interest-only mortgages.
The range is available to first-time buyers and remortgage customers with five, 10 and 15 year fixed rates starting at 5.25%, 5.25% and 5.36% respectively.
Loan terms of between 5 and 40 years are available, as are loan to ratios of 6x income for borrowers with a minimum equity of £200,000, or £300,000 in London.
There are no early-repayment charges for customers when moving house or redeeming in full from their own funds. Uncapped overpayments also allow borrowers to reduce their balance quicker without incurring any penalty.
Loan sizes range from £50,000 to £1,000,000, offering LTVs of up to 60%.
Rachael Hunnisett, director of April Mortgages, commented: “The interest-only market has been crying out for modernisation for many years.
“With the launch of our game-changing interest-only mortgages we are bringing a much-maligned product back to life, and ensuring that it is fit-for-purpose for today’s market.
“We are offering borrowers long-term financial security with the flexibility that comes from penalty-free overpayments and being able to move home or redeem their mortgage in full from their own funds without facing any ERCs.
“While the number of interest-only mortgages have been falling in recent years, we firmly believe they are an important tool that give homeowners greater control over their finances and the ability to manage their mortgage payments more effectively.
“For example, in the current interest rate environment, many older homeowners with significant equity could benefit from interest-only arrangements as they transition towards retirement ahead of downsizing.
“In an era where financial literacy is rising, we’re championing a return to holistic advice - giving brokers and their clients access to the toolkit they need to support empowered, financially savvy consumers.”
