U.K. Building Societies Attack FSA Interest-Only Mortgage Plan
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The Building Societies Association, which represents the U.K.’s 49 customer-owned lenders, urged the Financial Services Authority to rethink plans to restrict interest-only mortgages saying they risk stifling the market.
Forcing lenders to make regular checks on borrowers’ ability to pay will push up borrowing costs and limit choice for consumers, the Building Society Association said in a statement today in response to proposals the U.K. regulator made in July. The tightening of the rules may lead many lenders to withdraw from the market, the London-based BSA said.