Wednesday, September 8, 2010
Renting from the Bank might no longer be an option
The Council of Mortgage Lenders says the Financial Services Authority risks killing off interest-only mortgages if it goes through with the proposals in its Mortgage Market Review. In its latest issue of News and Views the CML says lenders taking responsibility for the performance of the repayment method could lead to the withdrawal of interest-only mortgages from the market. It says in the current risk-averse lending environment, with the FSA adopting a more interventionist and prescriptive approach, firms will react cautiously to a tightening of the rules on interest-only mortgages.