Can we get advice to interest only borrowers?/this week’s columns/ trade news round up

Given regulatory boss Martin Wheatley’s comments about interest only mortgages this week, I have found myself wondering what those who may feel themselves at risk of being caught out could do. There are suggestions on some of the trade comment boards that the FSA mortgage crack down has trapped this group further which surely is something the FSA needs to keep monitoring and adjusting its regulations for.

Of course, this group could seek the services of an IFA though that might cost quite a bit because it requires an assessment of a host of issues. Everything from a fact find of the borrower’s and their family’s finances to what their plans are for living in the house long term, what the options for downsizing and a question of whether they dare select an investment plan to run alongside the mortgage. There are a host of advice pitfalls but it seems that advice is what is needed. However except for those paying a fee, I struggle to see how the current regulatory set up will allow them to be advised in a cost effective way. And whatever else they can do, they won’t be able to sort things out on an, ahem, execution only basis. I wonder if this issue is covered in the exams?

Meanwhile on FundsNetwork, I suggest that the Retail Conduct Risk Outlook from the FSA actually may show them getting to grips with things. You may beg to differ. There is of course scope for your opinions on this site. Feel free to supply them below.

In this week’s Investment Adviser I wonder if it might be better to adviser charge the legacy business and if you do why exactly would that be 0.5 per cent?

Finally here is the week’s news round up on Adviser Home – Hector, RCRO and all that jazz.