Interest-only mortgages have increased their market share by 15% since 2003, and now account for 26% of all broker business, according to Paragon Mortgages.
Research conducted by Paragon also showed that repayment mortgages have declined in popularity, with market share falling from over 70% in 2003, to just 58% today. Repayment mortgages became popular in the mid-1990s as lower inflation reduced confidence in endowment mortgage, with many people fearing their policies would not generate sufficient funds to repay the original loan. John Heron, managing director of Paragon Mortgages, says: “Repayment mortgages remain the mortgage of choice for owner occupiers. The interest-only sector has grown both with house prices and buy-to-let.” Heron a...
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