Pinocchio meets the regulators… and it’s not looking pretty
‘Liar loans’ received a decent airing in the mid week money sections this week with warnings coming thick and fast. Simon Read focused the Mirror’s ‘Cash Point’ column on the FSA ruling to curb irresponsible lending of self certification mortgages, aka liar loans. These changes by the FSA mean that ‘Pinocchio’ inclined borrowers will not be able to exaggerate their income in order to borrow more than they can afford. However, Read points out that although this ruling might be welcome, it is a case of ‘the horses have already bolted the stable’ as thousands already face repossession.
This theme was carried on in the Money Mail this week, despite the section being a ‘pensions shambles special’ (see our Monday blog for more info on this issue) which also flagged the change in rules by the FSA. James Coney focused on the details of how the checks will become more stringent with the onus passed onto the provider to make sure these rules are followed to a T (after the obligatory fazing-in period).
In other mortgage news, Harvey Jones at the Express helpfully pointed out where the best mortgage loans could be purchased. However, he warns consumers to act now if they are thinking of getting a mortgage as the Bank of England has predicted deals drying up and interest rates rising sharply. The article also advises borrowers to reach for the long term with a 5 or 20 year deal as preferable to the traditionally most popular 2 year deal.
Clinton Manning at the Mirror also advises would-be first time buyers to get their skates on if they want to best the best deal, mentioning the HomeBuy Direct scheme which enables those with small deposits to take that first step onto the housing ladder.
Stories round up as follows:
Credit cards 6%