Monday to Friday | 10am - 4:00pm |
Saturday, Sunday & Bank Hols | Closed |
The Financial Services Authority (FSA) has today proposed affordability tests making lenders responsible for a customers means to take out a new mortgage.
These proposals come after the research, published in a consultation paper, of extensive analysis of past lending decisions and looking at causes of arrears and repossessions since 25. It found almost half of new mortgages opened 27-21 were found to be provided without the need to verify a customers income, and 46% of borrowers have no money left after payments. Therefore, verification of borrowers' income and extra protection for vulnerable customers with a credit-impaired history are measures also intended to be considered. "There is a clear link between financial overstretch and mortgage arrears and repossessions, and we are determined to protect vulnerable consumers by making sure that everyone who takes on a mortgage can afford to pay it back, said Lesley Titcomb, FSA director responsible for the mortgage market. "While it is clear the mortgage market has worked well for many, we need to build a strong new framework to protect mortgage customers and to ensure that the problems we have seen in the past do not happen again, particularly as the mortgage market recovers." Self-Certified Mortgage Lending Debt charity Consumer Credit Counselling Service (CCCS) supports the self-certified mortgage ban as an essential guard against reckless lending. "Buying a home, particularly for the first time, is a huge step. It is the biggest financial decision that most people will have to make so it is important that they make the right choices, said CCCS chairman Malcolm Hurlston. "Banning self-certified mortgages, and adding increased protection for those with a history of debt problems, will help inform these decisions and prevent people from being sold a home they cannot afford."
Compare Mortgages at moneymaxim
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
- Travel Insurance – Buy your Policy as soon as your Holiday is Booked
- How Would You Like to Travel in Luxury for Less?
- Why is the cost of car insurance rising and what can I do to beat it?
- What are the top options for travel and home insurance?
- Renting a Car Made Easier for New Drivers
- Five Top Easter Holiday Destinations in Europe
- We have upgraded our car hire excess insurance comparison service!
- Holiday Car Hire in the USA - What Insurance do you need?
- Travel Insurance – travel policies with car hire excess insurance built in
- What is the Difference Between Car Hire Excess Insurance and a Policy Bought at the Rental Desk?