Tuesday, March 13, 2012
FSA Warning
Mortgage repayment problems could get worse this year
"Setting out 15 high priority areas of 2012 in its Retail Conduct Risk Outlook, the City regulator noted that despite the historically low interest rates – at 0.5% for three years – a rise in repossessions in 2011 and the increase of mortgages with very high levels of arrears may signal that greater mortgage repayment difficulties may materialise in 2012".
Posted by alan @ 01:55 PM (2159 views)
5 thoughts on “FSA Warning”
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jack c says:
“The regulator said that higher use of forbearance since the banking crisis – where borrowers are given easier terms on their loans – have kept repossession and arrears rates lower than they might otherwise have been”
So what will the FSA suggest to lenders when borrowers cant really service the easier term loans due to rising food, petrol and heating costs etc? – write off the debt and send the Tax payer the bill perhaps?
I’m afraid you can’t defy gravity indefinitely and if the market dictates an interest rate rise where will that leave people.
happy mondays says:
@ Jack C -and if the market dictates an interest rate rise. What would indicate an interest rate rise? as it seems to me they can keep interest rates where they like..
jack c says:
happy mondays – BOE can vote to keep the base rate at 0.5% or indeed cut it as some are suggesting however they have no real control over mortgage rates as per last weeks debate on lenders increasing SVR’s. I’m keeping a close watch on Nationwide to see if they are effectively forced to make a move up on SVR.
happy mondays says:
Thanks jack c
jack c says:
happy mondays – you might also find this article of interest http://www.mortgagestrategy.co.uk/svr-increases-add-to-borrowers-woes/1047650.article