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Interest-only move shows FSA’s idiocy

THE EDITOR’S COMMENT OF THE WEEK

Responses to online story regarding Council of Mortgage Lenders’ concern that the FSA will kill off interest-only mortgages

If the FSA does introduce restrictions that cause lenders to withdraw the interestonly option, then they will simply reinforce what many IFAs already believe – that the FSA does not have a clue and that its interference on many issues has caused untold damage to a countless number
of individuals who they purport to be trying to help and protect.

Why doesn’t the FSA ban investments that can go down in value or insist that all life insurance providers refund the premiums unless the client dies or demand that companies providing loans do not charge any interest or require anyone crossing the road to wear yellow jackets or recommend that any person without a pension should commit suicide on reaching the age of 65 or…

I would apologise to anyone reading this for making idiotic suggestions but at least I am not being paid for my idiocy.
Bill Wells

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  1. The FSA should ban interest-only mortgages. This is half the reason people have got into such a mess in the first place. They should also restrict LTV’s to 85% while they are at it. Just look at the Canadian mortgage model if you want any clues as to how to run a responsible lending practice.

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