3.5 Million Mortgages Would Be Rejected
Published / Last Updated on 05/10/2010
3.5 Million Mortgages Would Be Rejected
by Ashley Clark, Director
Under new proposals set out by the Financial Services Authority (FSA) for tightening up lending in the mortgage market.
The Mortgage Market Review (MMR) is the FSA’s consultation paper on making lenders and mortgage brokers more responsible when arranging mortgages and debt.
Under the new proposals., the Council of Mortgage Lenders, a group representing all major banks and lenders, suggest that half of all mortgages in existence today that started between 2005 and 2009 would fail the new, stricter lending criteria.
It is argued that the proposed new rule will have a huge detrimental affect on the property market and should be reviewed to avoid a distaster.
For example, one of the proposals is to ban interest only mortgages, which could cripple the housing market in London as people do tend to need to borrow more just to get on the ladder on an interest only basis and then convert to repayment a couple of years later.
Useful links:
Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts
