Mortgage lenders under scrutiny in new govt inquiry

Published on 23 Jul 2010 under category: legal

The Government is to launch a new inquiry into the policies and practices of mortgage lenders, following the report from the Financial Services Authority (FSA) last October.
Homeowners have been asked to submit evidence to the Treasury Select Committee inquiry about their experiences of mortgage arrears and repayment arrangements.
They have until March 1st 2010 to send written evidence, which could initiate new proposals to change the face of lending.
Reformation of the mortgage markets system has been called for after a record number of possessions last year.
The Council of Mortgage Lenders revealed last week that repossessions reached a 14-year high in 2009, with almost 50,000 homeowners forced to return their properties to lenders last year.
In its October report, the FSA said that greater intervention was justified because consumers needed protection from themselves, when entering into lending agreements.
Furthermore, there needed to be action to prevent sales to consumers that exhibit "multiple high-risk characteristics".

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