Openwork has launched a campaign with several mortgage lenders to encourage interest-only borrowers to switch to a capital and repayment loan.
The move is aimed at addressing FSA concerns on interest-only loans, with fears growing many interest-only borrowers do not have capital repayment plans in place. Openwork, the UK's third-largest mortgage introducer, has now secured agreement customers can convert interest-only deals to capital and interest payment loans with no fee penalty. The lenders involved include: Nationwide, Halifax, C&G, Scottish Widows, Lloyds TSB Scotland and Woolwich. To help advisers highlight the move to clients, Openwork is offering pre-approved template letters outlining the consequences of not havi...
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