FSA to tighten mortgage rules

The mortgage regulator for the UK, the Financial Services Authority (FSA) is set to tighten the rules in the mortgages market following the abysmal financial crisis that has gripped the globe in the past twelve months.  It was inevitable that this should happen at some point in order to help prevent this sort of crisis in the future, so what exactly does the FSA have in mind?

Prime Minister Gordon Brown has spoken of his opinion that 100 per cent mortgages should be completely banned in the future and although he has remained vague on any details, rumours are rife that moving forwards the FSA may consider setting up minimum deposit rules of as high as 15 per cent.

There is also the possibility that the FSA might consider tightening up the rules on income multiples to stop borrowers from borrowing more than they can afford.

Those taking their CeMAP training at the moment and looking to become mortgage advisors will be very interested in keeping up to date on announcements or news of this sort of regulation change.  The CeMAP syllabus for next year could be considerably different.

Comments

2 Responses to “FSA to tighten mortgage rules”

  1. Mortgage Compliance on March 13th, 2009 1:52 pm

    The FSA is correct to highlight its concerns within the mortgage industry, the weekly news of mortgage brokers being banned for wrong doing is a major concern and highlights the requirement for good systems and control and TCF. I do believe that changes will be needed but there is no “quick fix” as the problem appears to be escalating. A good start, is for Senior Managers and Directors to fulfil their regulatory obligation with ongoing review of their processes and practices and if need be seek help.

  2. Mortgage brokers defend use of interest only mortgages on September 18th, 2010 6:22 pm

    […] FSA to tighten mortgage rules […]

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