FSA proposals designed to make mortgage borrowing safer for consumers may in fact make it more difficult for people to get on the property ladder, the Council of Mortgage Lenders (CML) says.
The regulator today issued a Mortgage Market Review: Responsible Lending consultation paper, urging lenders to "get back to the basics" of responsible lending. Among a raft of measures, it proposes imposing affordability tests for all mortgages and making lenders ultimately responsible for assessing a consumer's ability to pay. Lenders should also require verification of borrowers' income in every case to prevent over inflation of income and mortgage fraud. But the CML says the FSA's proposes "prescriptive" approach to assessing applicants' available income "may indeed make borrowi...
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