Arab Today, arab today new mortgage lending rules set out by fsa
Last Updated : GMT 23:46:04
Arab Today, arab today
Arab Today, arab today

New mortgage lending rules set out by FSA

Arab Today, arab today

Arab Today, arab today New mortgage lending rules set out by FSA

London - Arabstoday

New rules to stop a resurgence in risky mortgage lending are likely to be imposed in 2013 by the Financial Services Authority (FSA). The regulator\'s revised proposals still intend to bring in \"common sense\" standards that will stop home buyers borrowing more than they can afford. Lenders are being told they must better assess the affordability of loans. But some flexibility is being allowed for existing customers who might have been prevented from remortgaging. Lord Turner, chairman of the FSA, said: \"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.\" The regulator wants to stop any possibility of a return to the early years of the past decade, in which some lenders handed out mortgages with only cursory checks on borrowers\' real ability to repay. The most notorious examples were the \"Together\" mortgages offered by the Northern Rock bank, which granted loans worth 125% of the value of homes. In some other extreme cases, lenders offered mortgages worth seven times a borrower\'s income, or allowed them to exaggerate their real income, especially in the case of \"self-certified\" mortgages. Latest proposals The thrust of the FSA\'s proposals, which are now going out to a further round of public consultation, is still that lenders must judge properly the ability of individual borrowers to repay. \"The proposals will see prospective borrowers - whether they are first-time buyers, right-to-buy tenants or home movers - get the right information and advice, at the right time, and ensure mortgage lenders will be properly checking each applicant\'s realistic ability to repay their mortgage,\" the FSA said. Specifically, when lenders assess a mortgage application, they will have to: assume interest rates may rise from their current low levels. not let borrowers rely on the possibility of rising house prices to claim they can eventually repay. assess interest-only mortgages as repayment ones, unless there is a \"believable\" source of money to pay off the loan. Although lenders will still have to check income details in each mortgage application, the FSA is no longer proposing that a borrower undergoes a detailed check of how they spend their money, but only be given a broad assessment of their \"committed and essential household expenditure\" instead. Under the proposed new rules, interest-only mortgages can still be offered if there is a \"credible\" plan to repay the loan, which does not involve a borrower assuming he or she can eventually cash in on the rising value of their home. No lock-out Existing borrowers who already have a loan that might be forbidden under the new rules, such as an interest-only loan, a self-certified one, or one with a very small deposit, will not be prevented from remortgaging. The original proposals were in danger of locking credit-worthy borrowers out of the market” End Quote Paul Broadhead Building Societies Association \"Existing borrowers will be unaffected and lenders will have the flexibility to provide new mortgages to some existing customers even where they do not meet the new affordability requirements,\" the FSA said. \"We will allow lenders to waive the affordability rules when entering a new mortgage contract - providing the borrower has a good repayment history,\" it explained. Paul Broadhead of the Building Societies Association said: \"The original proposals were in danger of locking credit-worthy borrowers out of the market or imprisoning those with immaculate payment records, but non-standard profiles, in their current homes and loans.\" \"This seems to have been avoided which is good news for the self-employed, those in existing self-certified mortgages and people with negative equity.\" Paul Smee, director general of the Council of Mortgage Lenders said the new version of the FSA\'s rules was \"workable and appropriate\". \"The FSA\'s new proposals seem to strike broadly the right balance,\" he said.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today new mortgage lending rules set out by fsa Arab Today, arab today new mortgage lending rules set out by fsa

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 09:38 2017 Monday ,20 February

Japan returns to trade deficit in January

GMT 07:16 2017 Monday ,20 February

Global arms trade highest since Cold War

GMT 06:10 2017 Monday ,20 February

Tourism shows signs of recovery in Egypt

GMT 05:45 2017 Monday ,20 February

Brexit U-turn ruled out by many in EU

GMT 16:23 2017 Sunday ,19 February

Global energy news

GMT 16:05 2017 Sunday ,19 February

Trudeau calls for wider social benefit from economy
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday