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Bank Lending (11 Nov 2008)

George Mudie: ...cut, prevented customers from moving from making repayments on both interest and capital to having interest-only loans. If one is in trouble, the first suggestion that a sensible bank would make would be to change to an interest-only mortgage, because those payments are cheaper than the repayment option. So, TSB stopped existing customers from switching to interest-only mortgages in those...

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