View more on these topics

Warning by MCCB over the perils of interest-only loans

The Mortgage Code Compliance Board has sounded a warning to borrowers with interest-only mortgages they could be forced to sell their homes if they have no way of paying back the loans.

The voluntary regulator, which is due to be phased out once statutory regulation begins at the end of October, says a borrower could get to the end of the mortgage and find themselves evicted as they cannot repay the capital, describing the option as “suicidal”.

MCCB head of communications Brad Baker says only one in 800 borrowers is affected and 94 per cent of those say they plan to do something about it such as use their savings, sell the property or switch to a repayment mortgage at a later date.

He urges borrowers to keep in touch with their lender or broker and be aware of their options.

The Council of Mortgage Lenders has published the results of a survey which reveals that more than 250,000 households have an interest-only mortgage which is not linked to an investment policy designed to repay the amount that was originally borrowed.

A total of around 14,000 households say they do not know how they will repay the loan.


Pink launches exclusive self-cert tracker

Pink Home Loans is currently offering an exclusive flexible self-cert tracker as part of its branded lending range funded by Platform. The product tracks the Bank of England base rate plus 0.99 per cent for the full term of the mortgage, offering an initial pay rate of 5.49 per cent. The flexible tracker offers flexible […]


Do you agree with Sesame group chief executive Patrick Gale that only IFA networks with more than 500 RIs will survive? “No. Size is not the only factor. If they are astute enough, the smaller ones can survive.” Frank Gow, Ashwood Law“Yes. It is a continuation of what we have been experiencing in the last […]

Is inflation overblown?

A year ago, markets were obsessed with the threat of global deflation. The headlines were full of tales of Germany plunging into a lengthy period of deflation and the unending flat line of Japanese growth. Now, a mere 12 months later, the pendulum has swung back and concerns are shifting to the risk of resurgent […]

Treasury quashes hopes for appeals

The Treasury review of the relationship between the Financial Ombudsman Service and the FSA has all but ruled out an external right of appeal for firms despite repeated calls from the industry for an appeal process. The consultation paper, published last week, points out that establishing a right of appeal or giving a body the […]


News and expert analysis straight to your inbox

Sign up


    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