Homeowners-cum-tenants who have been ripped off by sale-and-rent (SRB) firms may be in line for compensation. SRB firms offer to buy homes and then let them back to their previous owners. However, according to a review of the market by the Financial Services Authority (FSA), most deals offered are either “unaffordable or unsuitable”. The regulator [...]
Financial Services Authority
Repossessions up, arrears down
Latest figures from the Financial Services Authority (FSA) show repossessions rising by 2% in the third quarter of 2011, compared with the previous three month period, with 9,670 homes returned to lenders. However, there were only 34,900 new arrears cases in Q3, down 2% on the previous quarter. As a result, the total number of [...]
Mortgage arrears at three-year low
The number of mortgage borrowers in arrears fell 1% in the three months to the end of June, new figures from the Financial Services Authority (FSA) show. With 332,700 homeowners unable to keep up their repayments, the total represents a healthy 6% annual decline and leaves the proportion of the UK’s residential loan book in [...]
Sub-prime lender Swift fined
The Financial Services Authority has fined Essex-based mortgage lender Swift 1st Limited £630,000 for unfair treatment of some customers facing mortgage arrears. The firm has also been ordered to provide redress to customers in arrears who were forced to pay excessive fees and charges, and customers who redeemed mortgages early on balances that had been [...]
Lenders warned on interest-only mortgages
Lender forbearance over mortgage arrears could result in repossessed homeowners facing greater losses, the Financial Services Authority (FSA) has warned. The regulator is particularly concerned that where a borrower in financial difficulties has their mortgage converted from repayment to interest only, a repayment strategy is in place. It also wants lenders to check that both [...]
Homeowners alerted on “Crossroads” home income scheme
The Financial Services Authority (FSA) is advising consumers to be “cautious” about products that offer a “no cost” way of generating income from their homes. One such product brought to the attention of the regulator is called Crossroads, which claims that it pays homeowners an annual income of 5% based on 50% of the value [...]
FSA will not ban interest-only mortgages
The Financial Services Authority (FSA) has published its business plan for 2011/12 in which it states that it will not ban interest-only mortgages. In October 2009, the regulator proposed major reforms to the UK mortgage market which included making lenders responsible for assessing a borrower’s ability to pay, and banning “self-cert” mortgages. At this point, [...]
Lender forbearance disguises scale of mortgage arrears
The risks faced by the UK’s mortgage lenders have been highlighted by the first Prudential Risk Outlook (PRO) to be published by the Financial Services Authority (FSA). According to the FSA, the lower arrears and repossessions seen during the current downturn, compared with the previous recession, are down to falling mortgage interest rates and lower [...]
Mortgage arrears capitalised at “increasingly rapid rate”
A new report from the Financial Services Authority (FSA) highlights some of the current and emerging risks in the UK mortgage market.
The regulator has published its first Retail Conduct Risk Outlook (RCRO), which seeks to identify potential risks for customers across a range of financial services sectors.
On mortgages, the RCRO notes that in terms of [...]
UK first: mortgage firm fined for irresponsible lending
In the first case of its kind, the Financial Services Authority (FSA) has fined DB Mortgages for irresponsible lending practices and unfair treatment of customers in arrears.
The firm is part of the Deutsche Bank Group and in addition to paying an £840,000 penalty is facing a bill of around £1.5 million in compensation to borrowers.
DB’s [...]
New measures on sale of mortgage books
The Government has announced a package of measures intended to protect homeowners whose mortgages are sold on to a firm that is not regulated by the Financial Services Authority (FSA).
Prior to the financial crisis, it was common for lenders to sell their mortgage books as a means of raising new capital for lending.
However, legislation to [...]
Repossessions fall to end-2007 levels
New mortgage lending data from the Financial Services Authority show repossessions falling to 9,145 in the third quarter of 2010.
The total represents an 8% decline on the previous three-month period and is at its lowest since the end of 2007.
In addition, the number of new arrears cases fell to 36,600 in Q3, having declined in [...]
