Mortgage products combining capital and interest-only repayments are increasing in popularity, as a ...
Mortgage products combining capital and interest-only repayments are increasing in popularity, as a means of addressing endowment shortfalls, writes Adele Burton.
Allen Bruce, marketing manager of UCB, believes they are a viable solution to a growing problem, as borrowers can continue with endowment payments rather than surrendering their policy.
Bristol & West is another lender to see an increase in its part and part mortgages, which it too attributes to the problems associated with endowment shortfalls.
However, some industry experts are warning this kind of hybrid product requires more complex advice from intermediaries.
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