The FCA, having recognised the treatment of existing interest-only mortgage customers as a key risk in their 2017/18 business plan, have conducted a review of how lenders have been treating customers and published their findings.
The results are generally positive for lenders. The FCA found that lenders had made progress in the fair treatment of these customers and had strategies in place to contact customers and discuss their repayment plans (or lack thereof in some cases). In almost all cases, the FCA concluded that lenders were recommending repayment options that were likely to be fair and were reducing the potential harm caused by non-payment of the capital sum at the expiry of the mortgage.
The FCA was concerned however that many borrowers were not engaging with their lenders to discuss their repayment plans and has issued both a statement urging action and an information leaflet for interest-only customers.