{"id":573,"date":"2020-07-11T10:39:54","date_gmt":"2020-07-11T10:39:54","guid":{"rendered":"https:\/\/www.shinemortgages.co.uk\/news\/?p=573"},"modified":"2020-07-11T10:39:57","modified_gmt":"2020-07-11T10:39:57","slug":"interest-only-mortgages-can-stunningly-rise-in-demand-after-the-lockdown","status":"publish","type":"post","link":"https:\/\/www.shinemortgages.co.uk\/news\/interest-only-mortgages-can-stunningly-rise-in-demand-after-the-lockdown\/","title":{"rendered":"Interest-Only Mortgages Can Stunningly Rise in Demand After The Lockdown"},"content":{"rendered":"\n<p>Covid-19 has completely changed the\nscenario of the mortgage market. In the search for better financial management,\nthe borrowers have shifted their priority in mortgages. There are varied\nreasons for that, and they all relate to the desperate need for attaining\nfinancial needs. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Interest-Only is Easy To Manage <\/h2>\n\n\n\n<p>The monthly instalments include only\ninterest and not the principal amount. It makes the monthly repayments much\naffordable for the borrowers. With spoiled finances, the mortgagors are not\nable to manage their expenses in limit financial resources. Their money mess is\nmore significant than ever as it is unprecedented. <\/p>\n\n\n\n<p><strong><em>Around 61% of mortgage deals are interest-only now. In March 2020 it was 48%<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Terms And Conditions For The Borrowers <\/h2>\n\n\n\n<p>The people indeed want to take the\ninterest-only mortgage, but they need to cross the affordability check stages.\nCurrently, the mortgage industry is on its toes on the lending policy. Mortgage\ncompanies are in no mood to make any adjustment in their lending policy.<\/p>\n\n\n\n<p>Every lender has instructed its <a href=\"https:\/\/www.shinemortgages.co.uk\/\"><strong>online\nmortgage broker<\/strong><\/a> to leave no stone unturned on the part of income\nassessment. There is no second chance for the borrowers now, and when it comes\nto interest only, the dos and don\u2019ts are stringent. <\/p>\n\n\n\n<p>Following things come under consideration\nwhile scrutinizing the financial conditions of the applicant \u2013 <\/p>\n\n\n\n<ul><li>The current income status of the applicant. Those who are back to\ntheir job can get the funds quickly. Those who are on furloughed income can\nalso attain funds, but only if they can present the proof that the company will\nretain them. <\/li><li>The applicant needs to have a repayment plan that is possible to\njustify. The complete payment happens at the end of the tenure. At that time,\nthe lender cannot manage to bear the burden of enormous risk. If the applicant\nfails to describe its repaying capacity on the repayment part, there is no\nchance of approval, and it is the bitter but the ultimate reality of the\nmarket. <\/li><li>The personal circumstances of the person will also matter as many\nare planning to move to other places in the UK. Some are getting back to their\nfamilies, and some are moving to the cheaper rental houses. The applicants who\nare moving to the new place can be challenging to detect. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Funds For The Short-Term Mortgage Needs Only<\/h2>\n\n\n\n<p>Interest-only mortgages are usually\nsuitable for short-term mortgage needs. If an applicant is planning for this\ntype of mortgage for a significant need, they may cross some complications.\nHowever, some lenders have also made clear that if the applicant is backed-up\nby a strong repaying capacity, the significant amount is possible. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">As the Always Higher Deposit Is  The Game-Changer  <\/h2>\n\n\n\n<p>There is no second doubt on the fact that\ndeposit is always decisive in the mortgage and property buying decisions. In\nthe case of interest-only mortgages, the bigger down payment is playing a\nsignificant role in earning approval.<\/p>\n\n\n\n<p>The borrowers are also in favour of\naccumulating significant funds to provide a big deposit. Through that, they can\navoid the higher interest rate and can also manage the monthly instalments.\nAlready the mortgage market of the UK is asking for a large size down payment\nbecause more top LTV products are less in number now.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p><em>The above scenario explains the current situation of the borrowers as well as the mortgage industry. The good thing is that both are working on a mutual solution that is interest-only mortgage deals. Until the situations get normal, it is not wrong to work on this strategy.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Covid-19 has completely changed the scenario of the mortgage market. In the search for better financial management, the borrowers have shifted their priority in mortgages&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":574,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[49],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/posts\/573"}],"collection":[{"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/comments?post=573"}],"version-history":[{"count":1,"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/posts\/573\/revisions"}],"predecessor-version":[{"id":575,"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/posts\/573\/revisions\/575"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/media\/574"}],"wp:attachment":[{"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/media?parent=573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/categories?post=573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shinemortgages.co.uk\/news\/wp-json\/wp\/v2\/tags?post=573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}