In this context, the attraction of an interest-only mortgage becomes even greater. For first-time buyers and younger generations facing stagnant wage growth and massively increased living costs, the prospect of lower mortgage payments is certainly enticing.
It offers a foot on the first rung of a housing ladder they might not otherwise be able to ascend.
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Navigating this area requires a balance between offering payment flexibility and safeguarding borrowers.
While there's no universal solution, the lending market must start providing a broader range of options and catering for the underserved, or we risk no longer being a nation of homeowners.
Peter Stamford is lead adviser at Moor Mortgages
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