Paul Howard, head of corporate accounts at Nationwide, said: "Brave lenders should hold the line [on interest-only] and we will also hold the line."
Speaking at The Mortgage Event in London today, Howard agreed with other panel members that too many of the products had been lent in the past.
However, interest-only products will remain as long as the industry can justify the need, said Ian Ramsden, head of intermediary products at Lloyds Banking Group.
Ramsden’s comments followed the views of panel members, including chairman and executive chairman at PMS John Malone who said the FSA had been silent for some time on the subject.
Ben Thompson, director of mortgages at Legal & General said; “I hate to see the industry talk itself out of interest-only,” adding that “the knee-jerk reaction from lenders to the FSA originally raising the issue had been “too strong.”
