19 Jul

FSA changes 'make very little difference to homebuyers'

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.ADNFCR-1222-ID-19895604-ADNFCR

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