Charities back tougher mortgage regulation
Housing charities have written to the government urging it to back tighter regulation of the mortgage market.
Shelter and Citizens Advice have sent a joint letter to housing minister Grant Shapps supporting Financial Services Authority proposals to make lenders more accountable for ensuring borrowers can repay their debts.
Other housing bodies – including the Chartered Institute of Housing and the National Housing Federation – have complained the proposed new rules will prevent thousands of first-time buyers getting on the housing ladder, and damage the shared ownership market.
They have signed a separate letter to the chancellor warning of ‘dire consequences’ if the plans go ahead.
But Shelter and Citizens Advice are backing the proposals. Kay Boycott, director of campaigns, policy and communications at Shelter, said: ‘From our research we know that millions of people are already struggling with their mortgage payments.
‘We urge the government to support the FSA’s proposals to ensure we prevent even more people from living on a knife edge.’
Citizens Advice chief executive Gillian Guy added: ‘These proposals are about the FSA ensuring that mortgage lenders and borrowers take proper care to consider whether a mortgage is affordable and sustainable over time before entering in it.’