View more on these topics

FCA to investigate interest-only mortgages

The FCA is to investigate lenders with interest-only mortgage books to make sure customers are being treated fairly.

The regulator unveiled the thematic review in its 2017/18 business plan today.

The FCA says: “Around 1.8 million UK homeowners currently have outstanding interest-only mortgages, excluding buy-to-let, and many do not have an appropriate strategy to repay them.

“We will look at how firms treat borrowers whose interest-only mortgages are approaching maturity and their ability to ensure these customers are treated fairly.

“This will include those interest-only mortgages that are due to be repaid by 2020 – where borrowers have the least amount of time to find a solution.”

The regulator has delivered mixed messages when it comes to interest-only mortgages.

In 2012 former FCA chief executive Martin Wheatley said the loans could be a “ticking time bomb” because of a wave of maturing loans with no repayment strategies.

But in April 2013 the FCA said it was worried about a lack of interest-only mortgages after most lenders pulled out of the market ahead of the Mortgage Market Review’s tougher repayment rules.

Then in August 2013 the regulator asked lenders to contact interest-only borrowers whose mortgages are due to mature by the end of 2020 about how they plan to repay their loans.

The FCA carried out thematic reviews into interest-only loans in 2013 and 2014.



Standard Life employee loses complaint over pension transfer value

A Standard Life employee has had a complaint that the provider mishandled his requests for cash equivalent transfer values rejected by The Pensions Ombudsman. The complainant, referred to as Mr T, was a deferred member of the Standard Life Staff Pension Scheme. In March 2016, he requested a CETV for his pension rights, and was […]


FCA to launch platform competition review

The FCA is launching a market study to investigate competition between platform providers. In its business plan released this morning, improving competition in the platform space was placed as one of the regulator’s priorities in the retail investment space. The study will consider both the direct to consumer and advised platform market, as the FCA […]


Theresa May announces snap general election

Prime Minister Theresa May has announced a snap general election. Speaking at Downing St, she announced it will take place on 8 June. Sterling regained ground having fallen earlier in the morning as news that she was due to make a surprise announcement spread, down 0.3 per cent to $1.2528 an hour before the news of […]

Japan 2017 Outlook: Abenomics 2.0

By Chris Taylor, head of Japanese Equities, Neptune Abe, having reinforced his political position domestically, will most likely hold off any further major policy enactments until after president Trump has settled into the White House and enacted some of his own. Then a relaunch of the Three Arrows programme is likely, or Abenomics 2.0, including […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. Too little to late the damage to holders of these mortgages has already been done with massive hikes in interest payments through affordability blackmail or loss of property. The FCA hoped it would all go away under natural wastage (see repossession) now it has returned to the agenda as mortgage holders fought back recently in the courts.

Leave a comment