The Financial Services Authority today announced plans to prevent a return of the risky mortgage lending seen in boom times, by proposing what it called "common sense" sales and underwriting standards across the market.
The regulator has made a raft of changes to its proposals under the Mortgage Market Review. It aims to prevent a recurrence of the irresponsible lending which resulted in some borrowers taking on mortgages which only seemed affordable on the assumption that house prices would always rise. Many of those borrowers ended up struggling to repay their mortgage and in danger of losing their home. The proposals will see prospective borrowers - whether they are first time buyers, right-to-buy tenants or home movers - get the right information and advice, at the right time, and ensure mortg...
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