‘The FSA will report in the next few weeks that Britain is facing a “crunch” period from 2017 as the rise in interest-only mortgages over the boom years raises the prospect of people losing their homes.
Of existing mortgages 40% are interest only, however, the FSA is preparing to rule that there has not been widespread abuse or mis-selling of the products.
The ruling will mark a shift in the debate over the relationship between banks and their customers as it will signal that the watchdog believes in the principle of “buyer beware”.
The FSA believes that unlike PPI, most people understand the difference between interest-only and repayment mortgages.’
Source: The Times