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Lenders warned on interest-only mortgages

by Gill Montia.

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Lender forbearance over mortgage arrears could result in repossessed homeowners facing greater losses, the Financial Services Authority (FSA) has warned. The regulator is particularly concerned that where a borrower in financial difficulties has their mortgage converted from repayment to interest only, a repayment strategy is in place. It also wants lenders to check that both [...]

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