Britons show interest in interest-only option

There is growing demand among borrowers for interest-only mortgages, according to new research, although this option may not be ideal for everybody. Following the decline of the endowment mortgage industry in the mid-1990s, Paragon mortgages' figures indicate that the repayment sector was the major beneficiary, taking over as the most popular type of product in 1999. However, there has been yet another shift in recent years, as whereas repayment mortgages have seen their market share decline from 70 per cent in 2003 to 58 per cent now, interest-only deals have seen theirs increase from 11 to 26 per cent during this time.
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