The FSA and Mortgages - Lessons to be learnt

I was sent this ‘Mortgage Review Discussion Paper’ today from my governing body. I thought I would share it as it makes for some very interesting reading, which will affect most, if not all of us.

You will no doubt notice that it contains a fair bit of 'bloody obvious stuff' that should have been put into place long before now.

The review’s key features are:

Imposing affordability tests for all mortgages and making lenders ultimately responsible for assessing a consumer’s ability to pay;

- Banning ‘self-cert’ mortgages through required verification of borrowers’ income
- Banning the sale of products which contain certain ‘toxic combinations’ of characteristics that put borrowers at risk
- Banning arrears charges when a borrower is already repaying and ensuring firms do not profit from people in arrears
- Requiring all mortgage advisers to be personally accountable to the FSA
- Calling for the FSA’s scope to cover buy-to-let and all lending secured on a home