Implications of the FSA Mortgage Changes for the Housing Market

The UK Housing Market

The changes to the market are unlikely to have much impact in the short term as currently mortgage lending criteria is pretty much sticking to similar rules as the FSA intend to impose.

The main impact will really take place when the economy and the market is likely to start recovering. Normally during a recovery, lending criteria will be relaxed a little as house prices start to rise rather than fall and lenders feel more secure in approving mortgage loans.

FIND OUT HERE what the implications are for you!

Mortgage Changes

To Get a Mortgage

The Financial Services Authority has just announced the latest round of suggestions to reform the mortgage market to try and make sure that the boom and bust in the housing market of 2000-2007 doesn't hit the UK economy again.

The first round didn't go well and suggested that there were going to be no self certification mortgages (where proof of income is not required). It also suggested an end to interest only mortgages. Not allowing lenders this flexibility would have very much put major restrictions on lenders to lend, meaning less buyers would have the finance to buy now and into the future.

READ HERE for the FSA's latest suggestions