In a bid to improve their financial situation, more and more people up and down the country are choosing mortgages on an interest only basis.
Research by the Council of Mortgage Lenders has uncovered the facts and figures. While a fifth of first time buyers go for the interest only mortgage, over a quarter of borrowers overall have this kind of agreement.
Despite interest only deals seeming to be a way to manage and reduce mortgage repayments, financial commentators warn of the risks. A spokesperson for mortgage brokers London & Country said:"Borrowers take out an interest only mortgage in the hope that when they get round to selling up, the rise in their property's value will pay off the debt, These people are taking a gamble. Eventually they will hit retirement and won't have sufficient funds to keep up the mortgage repayments."