FCA sounds warning bell over IO loans
The Financial Conduct Authority has warned that a considerable portion of UK interest only (IO) mortgage holders are likely to face a repayment shortfall and risk losing their homes. The warning comes weeks after S&P outlined similar concerns.
The FCA says there are currently 1.67m IO loans and part-capital repayment mortgages outstanding in the UK, equating to 17.6% of the whole mortgage market.Based on a review of the top 10 lenders representing 60% of the IO residential mortgage market, the FCA believes a considerable ...
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