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Growing number of lenders are offering interest-only mortgages

The number of lenders offering an interest-only option has almost trebled over the past five years, according to Moneyfacts data, despite the number of homeowners with interest-only mortgages halving over the past six years.

Moneyfacts says the growth in interest-only lenders suggests heightened willingness to offer this form of lending. The number of lenders in the market has increased from just 12 in June 2013 to 25 in 2016, 29 in 2017 and 33 in June 2018.

Charlotte Nelson, finance expert at Moneyfacts, said: “While the interest-only mortgage road has been and still is turbulent, there is confidence among some lenders, as the number of providers offering an interest-only option has increased to 33. However, the number of lenders in this sector is a long way from how things were 10 years ago, with 73 lenders having offered an interest-only option in June 2008.”

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