Interest-only mortgages are becoming the prerogative of the rich.
Just over a million homeowners pay off some or all of their mortgages on an interest rate basis, and most of them took out their loans before the financial crisis. These deals, in which borrowers do not pay the balance of their debts, have lost their popularity due to the credit crunch, but lenders have begun to offer them again – to a select few, wealthy enough to qualify.
Banks have moved to lend to wealthier homeowners who want to borrow cheaply to free up cash for other investments such as stocks and equities or second homes.
Record low interest rates allow borrowing up to £ 2 million in less than