28
Jan
Borrowers 'will benefit from FSA proposals'
The Financial Services Authority's (FSA's) proposals relating to
mortgage arrears and repayment schedules are "reasonable" and will
help borrowers who are struggling, one industry expert has
stated.
Ray Boulger, senior technical manager at John Charcol, commented
that homeowners will benefit from the plans, which will see lenders
banned from adding monthly charges where a repayment schedule for
arrears has been agreed.
"The FSA proposals are very reasonable [...] and obviously does
avoid putting further pressure on people who have gone into
arrears," he noted.
Mr Boulger explained that, from a lender's point of view, once a
repayment schedule for arrears has been agreed there is little more
for them to do administratively than with a standard
mortgage.
On January 11th, housing charity Shelter revealed that more than
one million home owners in the UK have used credit cards to pay
their mortgage or rent over the past 12 months.
In a survey carried out by the organisation, six per cent of
respondents admitted to using their credit card to meet housing
payments.