Repayment mortgage rates take-up hits 'record high'

The number of people opting for repayment mortgages has hit its highest level since records began, according to one firm.

Paragon Mortgages released its Financial Adviser Confidence Tracking FACT Index, which found that 77 per cent of people choosing mortgage rates went for a capital repayment policy.

This figure is up from 71 per cent, which was recorded in quarter four of 2010, and has been steadily rising since 2007.

John Heron, managing director of Paragon Mortgages, said: "FACT shows that residential mortgage lenders have been clamping down on interest-only [deals] since the start of the credit crunch and the decline of this market shows no signs of slowing down."

He went on to say that lenders are now positioning their businesses in anticipation of regulatory changes, signalled in the Financial Services Authority's Mortgage Market Review.

Recently, the Council of Mortgage Lenders reported that new buy-to-let take-up in the first quarter of 2011 totalled £2.9 billion across 27,600 loans.

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2011-05-12 11:59:37 © Moneyextra.com