Topic 12 - Suitability

Question 1

Record-keeping: interest-only mortgages

Answer 1

The lender must keep records of these mortgages for the term of the contract. It should include:

• Reasons for the decision to offer an interest-only mortgage
• Evidence of the customer’s repayment strategy and cost where applicable
• Details of the firm’s attempts to contact the customer for reviews
• The outcome of each review

Question 2

For interest-only mortgages, the lender must carry out a review…

Answer 2

…at least once during the mortgage term.