View more on these topics

More lenders unlikely to axe non-advised interest-only mortgages

Mortgage experts say lenders are unlikely to follow the Royal Bank of Scotland’s lead and withdraw non-advised interest-only mortgages ahead of the mortgage market review.

This week, Money Marketing revealed RBS has changed its interest-only lending criteria. A spokeswoman says the move will ensure clients get the right product and provide evidence that they will be able to repay the mortgage.

The FSA’s final MMR consultation paper, published in December, proposed rules restricting the sale of interest-only mortgages to borrowers with a repayment vehicle in place. It also proposed a ban on non-advised mortgages.

Intermediary Mortgage Lenders Association executive director Peter Williams says the FSA is concerned about the sales processes around interest-only mortgages rather than the products themselves.

He says: “Most lenders will wait to see the FSA’s final rules before restricting their interest-only criteria.”

Association of Mortgage Intermediaries director Robert Sinclair agrees there is little evidence to suggest more lenders will alter their criteria ahead ofthe MMR.

However yesterday, Nationwide Building Society confirmed it has decided to scrap interest-only mortgages for new borrowers. The change will take effect on 11 October.

The decision does not affect existing borrowers, who are free to port their interest-only mortgage if they move home. However, existing borrowers will not be allowed to increase their borrowing on an interest-only basis.

The FSA’s final MMR rules are expected in the autumn.



PosSol recruitment director departs

Positive Solutions recruitment director Martin Brown has left the firm. PosSol chief executive Peter Coleman informed partners yesterday that Brown would be leaving the role. He will be temporarily replaced by recruitment specialist Ian Clisby. Coleman says: “The next phase of our progress as a business will concentrate on further improving our proposition and delivering […]

Fund focus: QE and euro-crisis have seen gilts enter new territory

While fund managers are often keen to highlight ‘unprecedented’ periods for their asset class, gilts have genuinely entered virgin territory in recent months. Ten-year yields on UK government debt dropped under 1.5 per cent in July, hitting the lowest point since Bank of England records began in 1703. Reasons for this decline are well known, […]


Ex-Labour Treasury minister slams party for financial services ‘hysteria’

Former Labour Treasury exchequer secretary Kitty Ussher has delivered a stinging critique of her party for indulging in the “politics of envy” and “hysteria” in its stance towards financial services. Speaking at a fringe debate on producers vs predators at the Labour autumn conference in Manchester this week, Ussher said the current debate is “unhealthy […]

Alliance Trust Savings appoints Patrick Mill as MD

Alliance Trust Savings has promoted sales and distribution director Patrick Mill to the newly created role of managing director. ATS chief executive Robert Burgess stepped down in February. Mill will take on a number of Burgess’ former responsibilities. Mill has been ATS distribution director since July 2010 following five years as sales director at Prudential. […]

Survey cover

EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.


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. mmmmmmmmmm wrong – nationwide too and that will be just a start. They are all sheep that dont want to be the last one left in the market.

  2. Who are these so called mortgage experts and on what basis do they think this? as more lenders follow suit (and you can now add nationwide to the list) of course others will follow, let’s not forget the FSA has proposed this should be the case, only an idiot will disregard their musings (whether you agree with them or not)

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm