Friday 28th March 2008
Young professionals may find an interest-only mortgage to be the best option for them, an expert has claimed.
Andy Pratt, chief operations manager of independent mortgage adviser Alexander Hall, notes the benefits which may be derived from opting for an interest-only deal.
He suggests that young professionals could find the mortgage type particularly useful as they could be likely to have increased salaries in the future than when arranging their initial mortgage.
Despite a climate of slowing house price inflation, he adds that any growth in valuations may be enough to make an interest-only mortgage of use.
"Even a gradual or moderate increase in property prices could lead people to the calculation that an interest-only mortgage can work to their advantage," Mr Pratt observes.
To young professionals anticipating wage increases, he adds: "You can essentially use what you need to live on and pay off lump sums of the mortgage."
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