The suggestions set forth by the Financial Services Authority (FSA) to better protect those with mortgage arrears have been described as “very reasonable” by an industry expert.
According to Ray Boulger, senior technical manager at John Charcol, the proposals from the organisation – that monthly charges will not be permitted if repayment schedules are in place and being kept to – help by not putting additional pressure on those in debt.
He noted that it is likely this recommendation will be actioned as it has been accepted by the Council of Mortgage Lenders and any objections voiced would come from creditors themselves.
However, Mr Boulger did say that the FSA’s comments regarding repossessions – that they must remain a last resort – will have little impact, as those in the industry “want repossessions to be a last resort anyway, because [they] are bad news for lenders, just as they are bad news for borrowers”.
By Sarah Adie