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19/12/2011
New Rules Make Mortgage Lending Tougher
A report on published on Monday may make it tougher to get mortgages in future, in order to stop "risky lending".
The Financial Services Authority (FSA) announced its plans to prevent a return of the "risky mortgage lending seen in boom times", and to prevent the recurrence of what it called "irresponsible lending".
The Mortgage Market Review found that banks had been lending on the assumption that house prices would always rise leading to many of borrowers now struggling to repay their mortgage and in danger of losing their home.
According to the FSA, the proposals will see mortgage lenders "properly checking" each applicant’s realistic ability to repay their mortgage.
Chairman of the FSA, Lord Turner said: “We believe that these are common sense proposals which serve the interests of both lenders and borrowers. 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 report also outlined three principles of good mortgage underwriting that it would be issuing to lenders: Mortgages and loans should not rely on uncertain future house price rises; An affordability assessment should allow for the possibility that interest rates might rise in future; and that interest-only mortgages should be assessed on a repayment basis unless there is a believable strategy for repaying out of capital resources.
Lord Turner added: “The three key proposals are, we believe, the most effective way to tackle the problem of risky lending. But it is essential that we understand what their impact would be – how many consumers would be protected from the distress of arrears and repossessions, and, how many consumers who could have afforded a mortgage might have to take out a smaller mortgage or to delay their purchase."
(DW)
The Financial Services Authority (FSA) announced its plans to prevent a return of the "risky mortgage lending seen in boom times", and to prevent the recurrence of what it called "irresponsible lending".
The Mortgage Market Review found that banks had been lending on the assumption that house prices would always rise leading to many of borrowers now struggling to repay their mortgage and in danger of losing their home.
According to the FSA, the proposals will see mortgage lenders "properly checking" each applicant’s realistic ability to repay their mortgage.
Chairman of the FSA, Lord Turner said: “We believe that these are common sense proposals which serve the interests of both lenders and borrowers. 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 report also outlined three principles of good mortgage underwriting that it would be issuing to lenders: Mortgages and loans should not rely on uncertain future house price rises; An affordability assessment should allow for the possibility that interest rates might rise in future; and that interest-only mortgages should be assessed on a repayment basis unless there is a believable strategy for repaying out of capital resources.
Lord Turner added: “The three key proposals are, we believe, the most effective way to tackle the problem of risky lending. But it is essential that we understand what their impact would be – how many consumers would be protected from the distress of arrears and repossessions, and, how many consumers who could have afforded a mortgage might have to take out a smaller mortgage or to delay their purchase."
(DW)
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20 June 2011
Mortgage Lending Boosted
Gross mortgage lending totalled an estimated £11.3 billion in May, according to new data from the Council of Mortgage Lenders (CML). This represented a 12% increase from the £10.1 billion lent in April and was 1% higher than in May 2010. Gross mortgage lending includes lending for both house purchase and remortgage.
Mortgage Lending Boosted
Gross mortgage lending totalled an estimated £11.3 billion in May, according to new data from the Council of Mortgage Lenders (CML). This represented a 12% increase from the £10.1 billion lent in April and was 1% higher than in May 2010. Gross mortgage lending includes lending for both house purchase and remortgage.
25 October 2012
FSA To Introduce New Mortgage Loans In 2014
Tougher rules on UK mortgage lending will be introduced in 2014, later than expected, the City regulator has confirmed. Under new rules from the Financial Services Authority (FSA) lenders will have to put a borrower's ability to repay under greater scrutiny.
FSA To Introduce New Mortgage Loans In 2014
Tougher rules on UK mortgage lending will be introduced in 2014, later than expected, the City regulator has confirmed. Under new rules from the Financial Services Authority (FSA) lenders will have to put a borrower's ability to repay under greater scrutiny.
20 June 2006
May mortgage lending 'second highest on record'
Gross mortgage lending reached £28.7 billion in May - the second-highest monthly figure on record - according to the Council of Mortgage Lenders. Lending was 18% higher than in April and nearly 30% higher than in May last year. The CML said that it was the strongest May figure on record and only 0.5% below the record for a single month - £28.
May mortgage lending 'second highest on record'
Gross mortgage lending reached £28.7 billion in May - the second-highest monthly figure on record - according to the Council of Mortgage Lenders. Lending was 18% higher than in April and nearly 30% higher than in May last year. The CML said that it was the strongest May figure on record and only 0.5% below the record for a single month - £28.
20 August 2014
Mortgage Lending At Six Year High - CML
Mortgage lending has hit a six year high with £19.1 billion being lent in July, an increase of 7% from the previous month and a 15% rise from July last year.
Mortgage Lending At Six Year High - CML
Mortgage lending has hit a six year high with £19.1 billion being lent in July, an increase of 7% from the previous month and a 15% rise from July last year.
25 November 2013
Mortgage Lending Takes 'Slight Dip' In October
The number of mortgages agreed in the UK fell slightly in October, according to an industry report. The British Bankers Association (BBA) report that 42,808 loans were approved by UK banks last month, down by 375 on the number in September.
Mortgage Lending Takes 'Slight Dip' In October
The number of mortgages agreed in the UK fell slightly in October, according to an industry report. The British Bankers Association (BBA) report that 42,808 loans were approved by UK banks last month, down by 375 on the number in September.
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