The Nationwide building society will stop offering interest-only mortgages to new borrowers from 11 October. It is the latest big lender to take this step, in response to pressure from the Financial Services Authority (FSA). The Nationwide said its existing customers with interest-only mortgages could keep them, but not extend them. A spokeswoman said the deals accounted for only 3% of new lending and they were not worth the hassle of checking that borrowers could repay. In May, the Co-op bank took a similar step. Other lenders, such as Santander, HSBC and the Nationwide itself, had decided to offer such deals only to people who can put down at least a 50% deposit.....Read more here: BBC News - Nationwide ends interest-only mortgages