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.
First-time buyers are having to pay at least £120 per month extra to get onto the property ladder now than they would have paid 12 months ago, according to figures presented by Nationwide.
Consumers taking out interest-only mortgages in the main have a reasonable understanding of the risks involved but a minority of borrowers do not have robust repayment strategies in place, according to a report published by the Financial Services Authority....
As mortgage lending still increases month-on-month to record levels and property prices continue to defy gravity, do we see any let up or reasons for concern, or are some cracks beginning to appear?