19
Oct
FSA announces new mortgage proposals
The Financial Services Authority (FSA) has announced changes to the
mortgage market which may make it easier for people looking for
property for sale in Southampton.
It is hoped that the proposals will reflect the FSA's vision of a
more intrusive style of regulation and all mortgage advisors will
now be personally accountable to the organisation.
Jon Pain, managing director of supervision at the FSA, said that
over the last 18 months, there has been an "extraordinary upheaval"
in the mortgage market.
As a result of this, "we recognise that we need to bring about a
step change in regulation and we need to act now to address the
issues we have identified", he continued.
Self-cert mortgages will also be banned through required
verification of borrowers' income as part of the changes.
In related news, Peter O'Donovan, head of mortgages at independent
financial adviser Bestinvest, recently claimed that mortgage
lenders are beginning to relax and approvals are on their way
up.