Interest-only and fast-track deals are suitable for many
Share
In response to Lesley Titcomb’s comments on interest-only mortgages there are many clients who have genuine reasons for wanting to take out an interest-only mortgage and they should not be discriminated against if it suits their circumstances.
The FSA is going down the easy route by taking a blanket approach to the product rather than suggesting alternatives to ensure this type of mortgage is not abused.
I would make a similar comment regarding fast-track. Yes, it has no doubt been abused by clients and advisers but all brokers should now be obtaining full evidence of income before advising on a mortgage.
Most lenders now randomly audit a percentage of cases and request full verification of income from the client or broker.
This should be a clear message to professionals advising on mortgages to ensure they have evidence of income on file. If they do they have nothing to fear.
If an audit check by a lender turns up a case of fraud this should be reported to the FSA.
This approach would be more suitable than an outright ban on fast-track.
The fast-track approach works fine with clients who are able to plan ahead and complete their transactions quickly.
NAME AND ADDRESS SUPPLIED
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
