CML hits out at FSA mortgage suggestion
The case for improving rather than moving home could be strengthened by the Financial Services Authority's (FSA) decision to call for a debate on whether interest-only mortgages should still be available.
According to the Council of Mortgage Lenders (CML), the FSA's proposals could be counterproductive in that they restrict the home loans market even further.
This could lead more Brits to decide to invest in garden studios or bespoke conservatories, rather than buy a new home.
CML stats show that gross lending is down 50 per cent from 2007 and the organisation is concerned that imposing new regulations on interest-only deals could shrink the market further still.
"Firms are unlikely to want to be responsible for checking a borrower's repayment plans and continuing to monitor that they are on track - or to accept the blame if they don't deliver the intended outcome," the CML said in a statement.
The organisation recently released figures showing that the buy-to-let mortgage market was up 13 per cent in the second quarter of 2010 in comparison to the first three months of the year.
Posted by Paul Steel
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