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Interest-only rules will exclude many quality borrowers

So Lloyds Banking Group is no longer offering borrowers an interest-only repayment method if they are borrowing more than £500,000. (Mortgage Strategy Online).

Picture this scenario – a middle-aged couple with four children sell their current property and have £1.5m cash.

They want a new property for £2m so they would like a £500,000 interest-only mortgage.

They pass all the usual checks and have no intention of remaining in the property forever as they will sell it when the children leave home and downsize.

Where is the bad risk in this? Lenders should get a grip. This is just another example of automated decisioning gone mad.





Call me controversial but I’m not sorry the FSA has escaped the axe and I also have some sympathy with what Grenville Turner said about brokers’ power – he was misunderstood

China tech and Global Alpha: a new great leap forward

By Robin Geffen, Fund Manager and CEO

Internet giant Alibaba is exactly the type of entrepreneurial company that the high-conviction, top-performing Neptune Global Alpha Fund seeks to invest in. Established just 14 years ago in an apartment in Hangzhou, today Alibaba is larger than Amazon and eBay put together and is challenging some of the most powerful internet companies in the world…

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