With interest rates dropping many people with interest only mortgages could end up being caught out by the change. Some analysts say now might be the time for a change of deal.
Mortgage experts John Charcol have released a report that states, "“It is vital now that the borrowers who went interest only to help their affordability in 2006 or 2007 revert back to capital repayment, or overpay accordingly, as interest rates have started to reduce."
Tracker mortgages are being widely advised by analysts as the base rate is set to tumble further throughout 2008.