DLC BLOG
A tailor-made solution for some borrowers
Recently, two of my lenders came out with new products – Interest only mortgages. We have had these available from private lenders for many years but at much higher interest rates.
They are useful for real estate investors and people who have consolidated debts and need six months to a year to get back on their feet.
These new mortgages are not meant to be short term solutions but they are meant to be used for a minimum of two years and preferably for five years.
So who in their right mind would want a mortgage for five years where the principal doesn’t go down?