Recent Mortgage Proposed Amendments
Recent mortgage proposals in the UK have heavily recommended that it becomes harder, essentially, for people to get a mortgage in this country.
The FSA wants to get more interventionist and more intrusive, because in the past there has been a perceived failure to do this, and also therefore it would appear a lack of regulation stopping this from happening.
Whilst no-one wants to see a return to the problems encountered in recent years, this does leave a lot of people in a quandry.
Typically many people remortgage in order to get a better deal when their deals come to an end and to stop them having to pay exorbitant rates.
However, because of the tougher regulations that look set to come in, if they are adopted it will create a big problem for many who will be trapped on uncompetitive deals or those they didn't want to stay on, because they will be unable to remortgage under the tougher regulations.
It seems particularly likely that those on interest only mortgages which are deemed riskier may be stuck in the trap of being on an unattractive rate and being unable to remortgage.
Additionally it looks like the self-certified mortgage product which is attractive to those who are self employed and therefore find it harder to prove their income may also be removed as a product, due to concerns that some in the past have used it to make up their income and therefore get a mortgage sum they could never realistically pay back.
It is interesting that whilst the 100% mortgage, where the loan to value is the entire value of the house, is one of the most controversial products in the past and has led to a lot of problems, the FSA did not call for this product to be banned.
More finance news articles:
- Recent Mortgage Proposed Amendments
- Private Banking Explained
- Value Added Current Accounts
- Premier Banking Explained
- House Prices Falling in 2011
House Prices
- House prices in M18 7
- House prices in NN3 7
- House prices in TR3 7
- House prices in S41 9
- House prices in RG31 7
