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.