New FSA Proposals Could Help Those With Mortgage In Arrears

New FSA proposals for mortgage borrowers

The FSA wants to ensure that mortgage customers are protected and that lenders only lend to those who can afford mortgage payments.

Key proposals:

Introducing affordability tests

Verification of borrowers’ income

Extra protection for susceptible customers

The proposals are a direct result of a review undertaken by the FSA, which looked into causes of mortgages in arrears and repossessions since 2005.

Conclusions from the review:

Nearly half of all households either had no money left or had a shortfall, after mortgage payments and living costs were deducted from their income

Almost 50% of new mortgage customers were not asked to verify their income between 2007 and 2010

Interest-only mortgages have been increasing, at the topmost, 30% of all mortgages were interest-only

Many borrowers depend on future house price rises and unsure life events to repay their mortgage

Customers with credit-impaired history are the most vulnerable

The FSA director responsible for the mortgage market, Lesley Titcomb, said:

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.

Payplan

If you are struggling to manage your monthly outgoings then contact Payplan for free debt advice online or simply call 0800 280 2816.

Written by Administrator on July 15th, 2010

2 Responses to “New FSA Proposals Could Help Mortgage Customers”

amanda says

in arrears with mortgages need help and advice . can i get smi or mortgage help scheme

April 5, 2011 at 2:41 pm

Lizzy says

Hi,

I think that best thing for you to do is speak to one of our advisors. They will be able to assess your situation and tell you what options are available to you.

Let me know how you get on.

April 5, 2011 at 3:25 pm

Free yourself from debt today.

New FSA Proposals Could Help Mortgage Customers

New FSA proposals for mortgage borrowers

2 Responses to “New FSA Proposals Could Help Mortgage Customers”

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