The Treasury Committee is to undertake a short inquiry into mortgage arrears and access to mortgage finance as part of its continuing examination of the ramifications of the banking crisis.
Evidence is sought on issues including the current number of homeowners in mortgage arrears and forecasts for the medium term trend in arrears. The inquiry will also look at the impact of the credit crunch on access to mortgage finance and the terms on which such finance is offered for first time homebuyers.
It will take evidence on the number and characteristics of homeowners who either have had and are having their properties repossessed and the forecasts for the trend in repossession levels over the medium-term.
Approaches taken by mortgage lenders towards homeowners in arrears and at risk of repossession will be looked at. This will include the treatment of homeowners by financial institutions specialising in mortgage lending to sub-prime borrowers.
The inquiry will also assess adherence to, and the effectiveness of, FSA rules and guidance for mortgage lenders on repossession policy and treatment of consumers in arrears as well as the FSA's regulatory approach.
Codes of conduct, protocols and statements of good practice issued by industry bodies in this area will be considerd as will concerns surrounding sale and lease-back schemes.
The success of Government schemes in existence before and after the financial crisis to support homeowners at risk of repossession and facing difficulties with mortgage payments will be assessed.
Deadline for submissions of evidence is 1 July.
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