TMA’s October Distribution Indicator shows brokers back the Council of Mortgage Lenders’ (CML) position over interest-only mortgages.

97% of directly authorised brokers surveyed believe borrowers should retain responsibility for repaying the capital at the end of the term. Only 3% said that ‘maybe’ it was the borrowers responsibility.

The responses follow the CML’s response to the FSA’s consultation paper on interest-only mortgages. The CML proposed an alternative approach that it says will strengthen lender oversight and have more tolerable compliance costs and regulatory risks. One of the key points outlined was that borrowers should retain responsibility for repaying the capital at the end of the term.

In another section of TMA’s monthly Distribution Indicator when posed the question: “in response to the FSA’s recent consultation paper which outlines the potential of killing off interest only mortgages