Immediate solution agreed on mortgage switches - but credit rating deal lags

The FCA has introduced enabling provisions that allow mortgage lenders to offer all borrowers a switch to interest-only payments for sixmonths without an affordability check.

By Neasa MacErlean

The check is also waived for those extending their mortgage terms - and they will have the option to switch back to their original mortgage term within six months. Borrowers need to be "up to date with their payments" in order for the affordability check to be dispensed with. The only other customers excluded from these terms are "second charge and bridging loan customers".