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Home Owners Given New Protection By Fsa

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How about extending some of these "new benefits" to us renters.. you know - the ones who did not contribute to the greedy hpi phenomenon - the ones that pay their rent every month, with no security of tenure?

This story really gets my goat :(

From the BBC

New rules to protect struggling mortgage holders have been outlined by the Financial Services Authority (FSA).

The rules seek to help people who have fallen behind on their mortgage payments, with the FSA saying they must be treated fairly by lenders.

The FSA also wants to ensure all mortgage advisers have been approved as "fit and proper" persons.

It has also announced new rules for staff and firms operating in the "sale and rent back" market.

Keeping records

Under the new rules for treatment of borrowers in arrears, the FSA is insisting that:

firms must not apply a monthly charge where a repayment agreement for arrears is already in place

any payments made by customers must be first allocated to clearing the missed monthly payments, rather than to arrears charges which can be repaid later

repossessions should always be the last resort.

In addition, firms will be obliged to record all telephone calls with customers in arrears and keep them for three years.

'Vital' changes

There are also tighter controls governing "sale and rent back" arrangements, whereby a borrower who cannot keep up repayments opts to sell their home, but stay in it as a tenant.

From 30 June, the measures the FSA are introducing will include:

a ban on high-pressure sales techniques

a 14-day cooling off period for customers to allow them to take more time over the decision

a ban on cold-calling and dropping leaflets through letter boxes

security of tenure for customers of at least five years

Lesley Titcomb, the FSA director responsible for the mortgage sector, said sale and rent back was often used by people in a hurry to stay in their homes.

"With cases of vulnerable homeowners evicted from their homes after 6-12 months after selling to unscrupulous sale and rent back companies, tighter rules were vital," she said.

The Housing Minister, Grant Shapps, said he was reveiwing his department's support schemes for home buyers in difficulty. Meanwhile, he said, the new rules should provide reassurance: "These tougher rules from the FSA will mean fairer treatment for struggling homeowners, and will ensure that lenders must exhaust every possible option to help before taking repossession action."

'Clean game'

The consumer rights lobby group, Citizens Advice, which has received more than 100,000 enquires about lending arrears over the past year, welcomed the FSA's changes, but said a closer eye should be cast over charges levied by some companies on customers in arrears.

It says some clients of its Wiltshire bureau had reported charges of £115 for each month they were in arrears with their mortgage with a sub-prime lender.

Citizens Advice head of consumer policy, Sue Edwards, said: "Citizens Advice Bureaux regularly report cases where large fees have been levied for various arrears procedures, which have simply added to the clients' problems. In many of these cases, it is not clear to either the client or their adviser how the firm has calculated the cost."

The Council of Mortgage Lenders (CML), whose members account for 94% of all mortgage lenders in the UK, said 46,000 homes were repossessed last year, the highest number since 1995.

It picked out the requirement for an adviser to be an "approved person" as an unnecessary additional cost on lenders.

But, the CML's director general Michael Coogan conceded that overall the FSA's changes were helpful.

"While we may feel somewhat harshly treated in relation to the treatment of lenders under the approved persons regime, we do recognise that the FSA is trying to make sure there is a clean game," he said.

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They need to balance it up for renters to make it all fair.

"a ban on cold-calling and dropping leaflets through letter boxes " is interesting. Will be reporting the blighters who continue with that.

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Definately, it appears that those renting are being ignored entirely, or just not thought about in the first place.

It's actually moral hazard. Everybody needs a place to live, just some people have taken out a huge loan to get somewhere they wanted.

Why is that any different to, say, taking out a huge loan to buy that ferrari that you've always wanted, but now can't afford. should the taxpayer help them too?

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What do you mean you didn't contribute?

You paid over inflated rents keeping HPI going.

It's like Wargames - the only way to win is not to play... actually, I waited for the crash until I started paying over-inflated rents - up until then we rented off a friend for a peppercorn price.

That aside, did rents rise much during the boom? I thought they stayed fairly level in comparison to HPI.

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It's like Wargames - the only way to win is not to play... actually, I waited for the crash until I started paying over-inflated rents - up until then we rented off a friend for a peppercorn price.

That aside, did rents rise much during the boom? I thought they stayed fairly level in comparison to HPI.

No, rents have been pretty much static for the past decade (I can only speak for London), just a 10% or 15% nominal increase. House prices on the other hand..........

In other words, mortgage payments were on a par with rental payments on a standard 1 bed flat back in 1999. Fast forward 10 years, and the mortgage payments are over twice as much as the rental payment on the same flat.

And they say that renting is dead money? laugh.gif

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Seems that the FSA is preparing for what is coming. Mind you logically they’d be better to have done this when the MSM start running with the HPC story.

Edited by Blod

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It's actually moral hazard. Everybody needs a place to live, just some people have taken out a huge loan to get somewhere they wanted.

Why is that any different to, say, taking out a huge loan to buy that ferrari that you've always wanted, but now can't afford. should the taxpayer help them too?

Catch 22... you won't freeze to death without a Ferrari, and can't be arrested for not having a Ferrari.

Vagrancy is still a criminal offence.

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security of tenure for customers of at least five years

:blink: Bump into the next parliament?

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security of tenure for customers of at least five years

And just how is this going to work exactly??? What if they just decide they don't wanna pay the mortgage after 5 years, do they get to live rent free ad infinitum?

This really is horse, stable and bolt material.

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What do you mean you didn't contribute?

You paid over inflated rents keeping HPI going.

What do you suggest instead? A tent? A motorhome? A tarpaulin covered pothole?

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Didnt grant shapps say something along the lines of all renters are happy with the service their landlords provide. Obviously renters are scum so the TV news media didnt see the need to take him to task over this.

Even ARLA (the landlords lobbyists) think tenants need more rights.

Basically Tory=Liebour=Rachman where tenants are concerned. There is no one representing tenants.

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What do you suggest instead? A tent? A motorhome? A tarpaulin covered pothole?

I'm just pointing out the obvious that even renters contributed to this mess. Once the frenzy begins no matter how insane you cannot escape it.

Edited by interestrateripoff

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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