Do the new regulators understand that Interest Only has it’s place? The FSA didn’t seem to.
How about people buying BTL properties, doing them up and then renting them out for a few years before selling them on? Interest only is a decent option for some landlords.
How about long term interest only mortgages as an alternative to roll up lifetime mortgages with much higher interest rates? As long as retired can afford the monthly payments, what is the problem?
How about flexible interest only mortgages whereby a self employed person can make lump sum capital repayments to suit their cash flow? In leaner times lower payments can assist enormously.
The FSA, it seems to me, painted “interest only” as high risk and basically a dirty word as a knee jerk reaction to the financial crisis.
Is it any wonder UK lenders have subsequently pulled out of the market?