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New Bank Rules Will Create 5.5Million 'mortgage Prisoners'

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http://www.dailymail.co.uk/news/article-1326745/New-bank-rules-create-5-5million-mortgage-prisoners.html

One in two homeowners with a mortgage could be crippled by changes proposed by Britain’s financial regulator, a major research report has warned.

The worrying prediction raises fears of a country of ‘mortgage prisoners’ who either cannot get a loan, or cannot remortgage their current deal.

The research, published yesterday by the Council of Mortgage Lenders, warns around 50 per cent of Britain’s 11.4million people who have a mortgage could be affected.

Of the total, around 20 per cent, equal to around 2.2million people, will be ‘shut out’ from the mortgage market – this means the loan that they currently have would not have been handed out under new rules currently being proposed by the Financial Services Authority.

To make matters worse, a further 30 per cent of people with a mortgage, equal to around 3.4million, will be able to borrow less than they need. The changes pose a worry for millions of homeowners whose loan is coming up for renewal, such as a three-year fixed deal which is about to end.

The CML fears that homeowners will not be able to remortgage to a rival bank or building society due to the new rules proposed by the FSA.

Got to love the reporting in this.

People won't be able to borrow the money they need!!!! What they mean is people will be able to borrow money that they can afford.

Although to be honest I bet the banks are rubbing their hands at this as all of these people who can't move are going to get stuck on the SVR meaning a nice big fat margin for the bank.

Crocodile tears from the banks I think.

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One in two homeowners with a mortgage could be crippled by changes proposed by Britain’s financial regulator, a major research report has warned.

"Liar loans cannot be dead!"

1_a_misery_ballbuster.jpg

Edited by thecrashingisles

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Just after 6.45 this morning on R4 there was an amusing rant by someone slating the "save money" gurus on daytime TV expounding the virtues of spending less - when they had previously been the ones to encourage free credit use... then she rants "you have to pay it back sometime it isn't free"

Well worth a listen and well worth the NUJ going on strike to hear something so refreshing :)

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For generations people have borrowed 95% or 100% of the cost of a property on a low fixed interest rate - for just a couple of years - and got away with it.

no they haven't - only since the deregulation in the early 80s

make that one generation

I can fix your quote:

For slightly more than one generation, people have borrowed 95% or 100% of the cost of a property on a low fixed interest rate - for just a couple of years - and got away with it.

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  • 145 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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