Today: Last Update:


Do you expect to see less or more second charge mortgage lenders in 2018?

FSA's intrusive affordability tests questioned by advisers

By  |

FSA's intrusive affordability tests questioned by advisers

In its mortgage market review discussion paper, released earlier this week, the FSA announced that the new proposals reflected its changed approach to a more “intrusive and interventionist” style of regulation.

These proposals include imposing stricter affordability checks for all mortgages, which could lead to homeowners having to disclose their spending habits when applying for a mortgage.
Industry figures have expressed concern about borrowers being forced to tell lenders how much of their disposable income they spend on things like alcohol, food, cigarettes, clothes and holidays.
Various mortgage brokers have warned that the stringent rules on affordability could cause major problems in the mortgage market and lead to even more people struggling to access finance.
Robert Sinclair, the director of the Association of Mortgage Intermediaries (AMI), has said: “We need to protect consumers, but we must ensure they are able to buy their own home when they can afford to do so. Any regulation needs to be both effective and proportionate.”
On the other hand, some mortgage brokers have agreed that gathering more information on consumer’s spending habits could give lenders a more accurate view of whether they can afford to meet mortgage repayments.   
Adviser, Andrew Montlake, said: “If you are a 40 a day smoker, then it is all going to add up. If you are going to lend money to someone then these are the details you are going to need to know as they are not going to kick the habit just for the sake of their mortgage.”
The FSA’s review paper is out for discussion until 30 January 2010, with the regulator actively seeking views from consumer groups and the industry. A feedback statement will be published in March.
The FSA also noted that implementation will be phased, with the focus on speed for areas of high detriment, such as arrears.

I well omega replica watches removed them, in I below. Those companions call fake rolex watches sounded like a bird chirp. Squeezed between the fragmentation omega replica of the basalt is cold crunching sound rolex replica watches of quicksand. Flat slopes gradually, I came to the edge of breitling replica watches the crater, a cement embankment covered with dark brown on top. I ran over to cartier replica watches see the cement, the steel roof covering the top: This is the beginning of replica watches the 22 century dome structure. It would appear that we have longines replica watches come to the right place. From my u boat replica watches current position.