24 Oct

Housing market sees more stringent lending laws

Housing market sees more stringent lending laws

Those looking to get into the property market in the future with the use of a mortgage are set to find it far more difficult to do so, after the Financial Services Authority (FSA) said that it will be strengthening conditions for lending.

This is being done to stop the sort of reckless lending that saw people with shortfalls on their mortgages after they were awarded 100 per cent loans in the past.

Now, those first timers seeking a home buying loan will need to prove that they can pay off any outstanding monies before their 70th or 75th birthday, while anyone looking for an interest only mortgage will have to show that they are saving enough to pay the lump sum at the end.

A Council of Mortgage Lenders spokesman said: "On the one hand, this means that consumers are unlikely to suffer significant additional impacts as a result of the changes. On the other hand, it also means that the relatively high hurdles for customers in getting a mortgage are likely to remain a permanent feature of the mortgage market."ADNFCR-1222-ID-801475570-ADNFCR

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