FIRST TIME BUYERS COULD BENEFIT FROM FSA GUIDELINES
Posted on 3rd January 2012
In an attempt to prevent further risky mortgage dealing, the Financial Services Authority (FSA) have announced a number of new measures to reduce risky home lending.
In their latest Mortgage Market review, the FSA have put these changes in place in response to the irresponsible lending that been experienced in the past. This involved a lot of borrowers taking on property loans that were based on the assumption that property prices would continue to surge.
Those who are looking to purchase a property for the first time should welcome these proposals, which are attempting to put the brakes on reckless mortgage lending. Lord Turner, chairman of the FSA, commented: "We believe that these are common sense proposals which serve the interests of both lenders and borrowers.
"While the excesses of the pre-crisis period have largely disappeared from the current market, it is important to ensure that better practice endures in future when memories of the crisis recede and the dangers of poor practice return." These proposals will ensure that important conditions are properly verified, such as income and necessary bills (such as council tax and heating)