The UK financial watchdog has put forward proposals designed to curb excessive mortgage lending. The Financial Services Authority (FSA) said it wanted to ensure that lenders only lent money to those who could afford it.
It wants to impose "affordability tests" for all mortgages and ensure that lenders get "back to the basics of responsible lending". It also wants mortgage customers to verify their income levels.
This proposal could mark the end of self-certification mortgages, where borrowers simply state their income without having to prove it.
This proposal could mark the end of self-certification mortgages, where borrowers simply state their income without having to prove it.
The FSA is inviting comment from industry groups and consumers on its proposals until 16 November this year. (source BBC - click the link for the full story)
