Lender interest-only exits may have been hasty - FCA

The regulator's first ever risk outlook paper out last week said many lenders had failed to fully assess ways of offering interest-only before withdrawing from the market, fearful of retrospective regulatory action. The regulator said: "While withdrawal from a product or market creates an opportunity for niche firms, the gap between withdrawal and the establishment of the niche market can leave consumer choices limited." He added a lack of strategic thinking under broader pressures may have been the reason for these withdrawals. "This could lead to precipitous withdrawal of firms ...