BGN Entrepreneur

Mortgage loan market, according to a new plan, the borrower must provide all proof of income mortgage loan applications – so, to prohibit “self-certification” mortgage – whether with the lender to calculate the consumer’s disposable income sufficient to cover the loan.

The FSA’s mortgage market lender of last resort review proposals to assess the borrower’s repayment ability, and responsible.

However, the Commission warned that mortgage, mortgage loans will be more expensive, difficult to obtain, as a result of recommendations.

Director General Michael Coogan said: “We support the burden of inspection needs. But I think we saw before the credit crunch is to have too much money around because of insufficient funds, the UK and the global market regulation. Now we have got enough money and too much regulation. ”

The FSA has imposed short-term loans to stop the specific loans, but warned that it would consider the loan limits and values, loan-to-income or debt income, if “the initial proposal did not sufficiently effective.”

This year in February, Brown, the Prime Minister to require the rejection of the zero FSA deposits and loans, he began to return to the traditional banking values, the so-called credit crisis and the emergence of 125pc mortgages.

Jon Pain, the Japanese Financial Services Agency, director of the supervision and management, he said: “The mortgage loan market, there have been remarkable over the past 18 months, turmoil, although the majority of borrowers has been very good, some people suffered a great financial hardship . We recognize that we need to achieve a step change in the first, we must act now to address the problem we have identified. ”

The FSA has also wish to consider the “Prohibition of toxic combination” – such as credit impaired borrowers to take higher-income products – and mortgage consultants and purchase loans in its mandate to bring about.

Hector Sants, the FSA chief executive, said it was “extraordinary”, the banks had to be informed how to properly offer loans.

“We need a new regulatory approach,” he told the British Broadcasting Corporation today’s program.

However, the President of chronic myelogenous leukemia Reuters warned that could reach more stringent rules, such as contract workers and the people trying to build a group of self-employment after redundancy.

He said: “These measures can all be ruled out, this is a somewhat blunt tool for different groups,” he told today’s program.

“Risky, if the assumption is that if the problem is the fault of the lender, then the lender or the prices have gone up even more powerful or not to.”
“We have only been in the market to lend tangible benefits in the past, and will continue to do so, but we have a market with less money. That means fewer people will be able to obtain mortgage loans and those who will be very much more expensive, they in 2007 or before. “

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