19
Jul
FSA changes 'make very little difference to homebuyers'
The Financial Services Authority's (FSA) changes to mortgage
restrictions will not affect most people looking for houses for
sale, it has been suggested.
Earlier this week, the FSA announced it will axe self-certified
mortgages, which allow homebuyers to validate their financial
circumstances themselves, in an attempt to reduce the conditions
under which people can be accepted for home loans.
However, moneysupermarket.com mortgage expert Hannah-Mercedes
Skenfield has spoken out about the recent developments, saying that
they will make "very little difference".
"Ultimately these measures are designed to protect us from the next
mortgage boom," she commented.
Instead, she said that the issue homebuyers are more likely to face
is the problem of how to get accepted for home loans.
Ms Skenfield added that "a hefty deposit, a squeaky clean credit
history, a repayment mortgage and a modest multiple of their income
are all prerequisites today".
The Association of Mortgage Intermediaries announced earlier this
week that it will continue discussions with the FSA to help
homebuyers get on the property ladder.