FSA Warn Against Interest Only Mortgages

First time buyers struggling to get a foot on the property ladder should be wary of taking an interest-only mortgage, unless a suitable repayment vehicle is in place, experts warn. According to the Financial Services Authority (FSA), although interest-only mortgages make up 24 per cent of the total mortgage market, 15 per cent of first time buyers and repeat purchasers from this group lack a suitable repayment strategy.