Mortgages -
FSA warns lenders on repossessions - 20/02/2008
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Almost 1.5 million homeowners could have problems with meeting their monthly mortgage payments this year, the Consumer Panel at the Financial Services Authority (FSA) said yesterday.
Many consumers are feeling the financial squeeze in the wake of the credit crunch - which has made high street lending more difficult to secure.
In order to tackle the problem, the panel urged lenders to be "reasonable" and to "treat customers fairly" in repossession cases.
Potential misselling of mortgages, including self certification mortgages, were also subject to Financial Ombudsman investigation, the FSA pointed out.
Chairman of the panel John Howard added: "We have heard that some less scrupulous lenders are rushing to repossess properties without the courts considering the FSA rules on repossessions and despite appalling stories of the misselling of mortgages, the sales tactics used are rarely taken into account.
"Clearly if a lender or mortgage broker has acted irresponsibly by persuading someone to take out a mortgage they cannot afford, a much more lenient view ought to be taken of the householder’s case."
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