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FSA will not ban interest-only mortgages

by Gill Montia.

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The Financial Services Authority (FSA) has published its business plan for 2011/12 in which it states that it will not ban interest-only mortgages. In October 2009, the regulator proposed major reforms to the UK mortgage market which included making lenders responsible for assessing a borrower’s ability to pay, and banning “self-cert” mortgages. At this point, [...]

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