Debt help: FSA announces proposals which could help with mortgage repayments

26/01/2010

The FSA has announced a new set of measures which could protect those struggling with debt payments.

Ensuring the fair treatment of mortgage holders who are in arrears is the main aim of the proposals.

Other key issues include guaranteeing that there are no unexpected early repayment charges on arrears charges and encouraging lending firms to only see repossession as a last resort.

Lesley Titcomb, from the FSA, said: "Today's proposals underline the standards that firms must meet and will help to ensure that homeowners in financial difficulties are treated fairly.

"Lenders need to be in no doubt of their obligations to customers who fall behind with payments and must realise that such circumstances are not an opportunity to create further profits."

The move comes as part of an ongoing effort to better regulate lending and avoid the difficulties that can arise from borrowing more than is affordable.

Tags; Housing Debt and Bills,

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