Interest-Only Mortgage Alert in U.K. Downgraded to Wake-Up Call

Interest-Only Mortgage Alert in U.K. Downgraded to Wake-Up Call

Chris Ratcliffe/Bloomberg

The regulator has tightened mortgage-lending rules since the 2008 U.S. subprime-lending crisis, banning interest-only mortgages when the borrower is betting on rising house prices to repay the loan.