Interest-only mortgages could benefit young professional first time buyers, one expert has claimed.
Andy Pratt, chief operations manager of Alexander Hall, explained that as the mortgages offer reduced payments compared to repayment deals, some first time buyers might find them a useful alternative.
He said: "Obviously, it's an option for clients where the mortgage is less affordable to them, but it's not something that a good advisor would recommend. But it does depend on the circumstances."
Mr Pratt added that for those on a low starting salary, but who expected to receive large bonuses in future it might be a good option as they could use these to pay a lump sum of the capital of their mortgage further down the line.
Earlier this week, Bernard Clarke of the Council of Mortgage Lenders stated that switching to an interest-only mortgage is one option for those concerned about being able to make their monthly payments .
Interest-only an option for first time buyers
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