Young professionals may find interest-only mortgages a savvy option, it has been suggested.

Andy Pratt, chief operations manager of Alexander Hall, said that people moving to London to start a career may benefit from lower initial payments.

A young worker on a limited salary but expecting a substantial rise as they move up the career ladder could benefit from interest-only payments, Mr Pratt explained.

"It doesn't necessarily mean they'll be winners in terms of beating the lender and the interest rate, but they feel a little bit more in control as they know they can do it whenever they want," he said.

The Council of Mortgage Lenders notes that the proportion of first-time buyers taking out interest-only mortgages without specifying how they planned to pay back their loan has grown from six per cent in 2002 to 20 per cent in 2007.

Mr Pratt maintains that this is not necessarily a bad thing, as such loans may be suitable for some people.
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