It has been reported that interest only mortgages are gaining popularity, particularly in the buy-to-let sector.
Buy-to-let landlords prefer the interest only mortgage as they have the option of selling the property as a way of settling the loan.
Our view
Repayment mortgages still remain the preferred mortgage for owner-occupiers, although figures show there has been a reduction in the number of applications. Interest only mortgages are right if you are using them for investment i.e. you can establish easily whether a profit is being made from income and gains after your expenses i.e. the interest payments and costs.