28 Jan

Borrowers 'will benefit from FSA proposals'

Borrowers 'will benefit from FSA proposals'

The Financial Services Authority's (FSA's) proposals relating to mortgage arrears and repayment schedules are "reasonable" and will help borrowers who are struggling, one industry expert has stated.

Ray Boulger, senior technical manager at John Charcol, commented that homeowners will benefit from the plans, which will see lenders banned from adding monthly charges where a repayment schedule for arrears has been agreed.

"The FSA proposals are very reasonable [...] and obviously does avoid putting further pressure on people who have gone into arrears," he noted.

Mr Boulger explained that, from a lender's point of view, once a repayment schedule for arrears has been agreed there is little more for them to do administratively than with a standard mortgage.

On January 11th, housing charity Shelter revealed that more than one million home owners in the UK have used credit cards to pay their mortgage or rent over the past 12 months.

In a survey carried out by the organisation, six per cent of respondents admitted to using their credit card to meet housing payments.ADNFCR-1222-ID-19584559-ADNFCR

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