The Financial Services Authority (FSA) has publicly censured Principal Mortgage Services Limited (PMSL), a mortgage broker based in Worcester, for failing to give suitable advice on interest-only mortgages.
The FSA has also banned the firm's director, Terence Harrop, from working in regulated financial services. PMSL recommended its customers take out an interest-only mortgage with an accelerator product called the Flexible Repayment Plan (FRP). The FRP was a means by which customers made capital repayments on their interest-only mortgages. These capital repayments were collected and held in an account operated by PMSL's sister company, Flexible Repayment Limited (FRL), and transferred to the customer's lender annually. PMSL advised approximately 738 customers to take out interest- on...
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