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FSA proposals will be "welcome news to thousands"

Published: 27/01/2010

The Financial Services Authority (FSA) has put forward new steps to protect mortgage holders and borrowers.

Tighter control over monthly arrears charges and an obligation to consider all other options before repossession are some of the main proposals put forward to monitor lenders.

Andrew Hagger from Moneynet.co.uk has praised the ideas and added that they could benefit many people who are struggling to meet mortgage repayments due to problems such as unemployment.

Mr Hagger said: "The consultation paper from the FSA proposing that no charges are incurred where a formal agreement between lender and borrower is in place, will be welcome news to thousands of genuine people who are battling to keep a roof over their heads.

"With 194,600 mortgages in arrears by 2.5 per cent or more of their outstanding balance (CML end of Sept 2009) these proposals will bring a collective sigh of relief from households the length and breadth of the UK."

Repossessions have already been reduced by a third of earlier estimations according to government figures.

However, almost 50,000 people lost their homes in repossessions this year, making the FSA proposals more than welcome.

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