FCA urged to clarify interest-only mortgage advice rules

But it also stated that “we do not think there is a case for making advice compulsory in all cases for retirement interest-only mortgages, as this would unnecessarily raise costs for consumers and potentially limit access to them". 

“As with all mortgages, advice will be required in some circumstances for retirement interest-only sales, such as where the customer has impaired credit or the mortgage is to be used for debt consolidation.”

According to the Financial Ombudsman Service, estimated interest-only mortgage complaints form only a small proportion of total mortgage complaints since 2014 - roughly 3 per cent per year - and the uphold rates are less than the average for mortgage complaints.

Financial YearNew mortgage complaintsUphold rates

New interest-only complaints

Uphold rates