FCA to introduce underwriting assessment for interest-only mortgages

The regulator, which will take over the regulation of consumer credit next April, will toughen up the rules for credit lenders, particularly those issuing interest-only mortgages, Martin Wheatley, chief executive of the FCA wrote in a letter to chairman of the treasury committee Andrew Tyrie, published today. Responding to Tyrie's query of whether the FCA proposed to make customers responsible for informing themselves about the product they bought, Wheatley said the regulator needed to find a balance between regulating complex products and giving people the freedom of choice. He wrote...