The new chief executive of Barclays fears that interest-only mortgages could become the next ‘mis-selling’ scandal, potentially costing billions of pounds and engulfing the bank in customer complaints. Antony Jenkins, named last week as replacement for the discredited Bob Diamond, told Financial Mail: ‘We spend a lot of time trying to look over the horizon to what might be complaints in the future such as interest-only mortgages.

‘We are trying to communicate frequently as these loans reach maturity and to help if a source of repayment for the loan hasn’t happened.’ Jenkins, who said he is confident that the bank’s handling of other complaints such as PPI mis-selling and interest rate swaps is improving, admitted that Barclays has a very large book of interest-only mortgages and was starting to see the ‘first few thousand’ who faced problems with repayment of the capital...........Read more here: Barclays chief Antony Jenkins fears interest-only scandal