News

Homeowners in arrears offered more protection

27 January 2010


New proposals by the Financial Services Authority (FSA) would mean that mortgage holders facing up to their arrears will be better protected.

Lenders are being requested by the FSA to guarantee they will refrain from undertaking repossession proceedings when possible, only using this avenue as a last resort. In addition to this, they will not be able to add on early repayment charges onto the arrears charges, and interest imposed on those charges.

Lesley Titcomb, the FSA’s director responsible for the mortgage sector, commented; “Today’s proposals underline the standards that firms must meet and will help to ensure that homeowners in financial difficulties are treated fairly.”

She added: “Lenders need to be in doubt of their obligations to customers who fall behind with payments and must realise that such circumstances are not an opportunity to create further profits.”

These new measures came as a result of research carried out by the FSA which found a high number of mortgages moving straight into arrears, potentially breaching responsible lending rules. The new proposals will also affect mortgage advisers and those who arrange non-advised sales, making them individually accountable to the FSA.

Source: homemove.co.uk

© Copyright 2010 Wyattswitch. All Rights Reserved. Powered by movewithus.

Lines open 9am – 8pm Monday to Friday and 10am – 4 pm on Saturday.  Calls are recorded and charged at national rate. The savings illustrated are based on a customer who currently buys their electricity from their local supplier and their gas from British Gas, who have also changed their payment method from cash/cheque on receipt of bills to monthly direct debit. Consumption amounts used in this illustration are based on OFGEM stated consumption details for the average household using 3,300kwh of electricity and 20,500kwh of gas per year. Figures correct as of 2nd March 2007.

Wyattswitch is part of Wyatt & Son Estate Agents, part of the Arun Estate Agencies Group. Registered Office. St, Leonard’s House, North Street, Horsham, West Sussex, RH12 1RJ.  Registered No. 2597969. The Arun Estate Agencies Group is an associated partner of switchwithus, a trading name of movewithus - the UK’s leading property services group.

Home | Cheap gas and electricity | New locks | Cheap broadband deals | Switch mobile phones | Cheapest home phone contract