View more on these topics

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.

NAME AND ADDRESS SUPPLIED

Recommended

JONATHAN CORNELL, HEAD OF COMMUNICATIONS, FIRST ACTION FINANCE

Marketwatch

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…

Read more 


Important information

Investment risks

The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.

Newsletter

News and expert analysis straight to your inbox

Sign up