FCSP welcomes interest-only action
The Panel has advocated early intervention and pre-emptive action in the face of emerging threats to protect consumers from harm.
Adam Phillips, chair of the Consumer Panel, said: “Interest only mortgages are a useful product when sold correctly and fully understood by those purchasing them.
“Investigation by the FCA suggests that some consumers with interest only mortgages are likely to find themselves facing a shortfall without a clear repayment strategy.
“We welcome the FCA’s work since early intervention by the regulator helps to minimise consumer detriment and has been one of the Panel’s consistent demands.”
The Panel added that it is pleased that the new regulator is being proactive in making consumers aware of potential pitfalls and empowering them to take action at an early stage.