New mortgage rules to be less draconian than feared

By Jeff Salway
Published on Sunday 18 December 2011 00:00

HOMEBUYERS are expected to get help tomorrow after pressure from mortgage providers has led to a watering down of new lending rules.

However, the Financial Services Authority is still expected to ban self-certification or “liar loans” in a clampdown on lending practices blamed for the housing boom and the credit crunch.

The FSA is keen to squeeze out high risk borrowers and is to announce the results of a review that will make sure lenders follow more responsible criteria. Even so, the mortgage industry thinks it has persuaded the regulator to be less draconian, fearing that measures may have weakened a struggling housing market.

Lenders will still have to verify borrowers’ income but the checks are expected to be less comprehensive than had been feared by lenders, who were concerned with the potential administration costs.

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KINGFISHER1

Sunday, December 18, 2011 at 04:13 PM

Self certification loans are NOT responsible for financial mess. What is responsible is the greed in the Banking Circles. That includes specifically the takeover of the Building Societies,whose main function was to provide loans specifically to enable people to buy houses! People need houses.They also need work to enable them to buy houses. I am satisfied there has been no attempt to sort out the banking mess,and I am not pleased DRAGON

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