First-time buyers look set to benefit from new proposals aimed at protecting mortgage holders who have fallen into arrears with their payments.
The Financial Services Authority (FSA) wants to see an end to lenders charging monthly fees to customers who meet the agreed repayments, a move that has been welcomed by mortgage advisory company John Charcol.
Ray Boulger, the company's senior technical manager, said the FSA's proposal is "very reasonable" because unnecessary pressure will be taken off people already in difficulty after falling into arrears.
"One hears of extreme examples of somebody who is paying back their arrears at £50 per month, but they are getting a monthly fee from the lender at £100 per month so they are getting further into arrears even though they are paying back," he explained.
Mr Boulger also said that that the Council of Mortgage Lenders had accepted the proposals and that the only organisations likely to oppose them are the mortgage providers themselves.
The FSA also wants to see mortgage lenders to consider allowing borrowers a number of options, with repossessions always being a last resort.
See Also: Property News (6699)
Date Published: 28 January 2010
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