Customers facing interest-only shortfalls might need help
The regulatory review into the residential interest-only mortgage market found no evidence of systemic mis-selling, the Association of Mortgage Intermediaries (AMI) has said.
Hundreds of thousands of interest-only mortgage borrowers whose deals mature before 2020 are likely to face a funding shortfall, according to estimates produced for the Financial Conduct Authority (FCA).
The withdrawal of lenders offering interest-only may limit consumer choice, said the incoming CEO of the twin-peaked Financial Conduct Authority, which took over from the FSA yesterday.
Over a fifth of retirees are taking out equity release loans to clear outstanding mortgages, according to research by Key Retirement Solutions.
Jon King looks at how equity release can help those approaching retirement with interest only mortgages.
Fiona Murphy asks advisers how the equity release market is developing.
The Co-operative Bank is to withdraw its interest-only mortgage range, it has announced.
The Financial Services Authority (FSA) has published guidelines to push lenders to simplify wording on mortgage contracts that permit switching consumers from interest-only to repayment mortgages.