Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Countdown to new UK lending laws

New rules from the UK’s Financial Conduct Authority (FCA) will come into force on 26 April 2014, designed to ensure a “common sense approach” is taken for every lending decision.

To ensure that people only get a mortgage they can afford - and to prevent a recurrence of the irresponsible lending practices of the past - every borrower will now have to prove that they can afford the repayments, both now and in the future.

The FCA has produced a short guide that explains the changes. 

Advertisement
Advertisement

About half a million copies will be given out to prospective borrowers in branches of high street lenders, mortgage advisers and estate agents.

“In the past, too many people got a mortgage by simply telling their lender they would have no problem repaying their debt, and that was that,” FCA chief executive Martin Wheatley said.

Getting a mortgage can be one of the biggest financial decisions people will ever make, so it needs careful consideration,” Mr Wheatley said.

“Our new rules will hard-wire common sense into mortgage lending, and the guide we have created will help explain those changes to borrowers.”

The UK mortgage industry has been preparing for the changes for about 18 months and many firms are using the new approach already, the FCA noted.

 

Countdown to new UK lending laws
mortgagebusiness

Latest News

Firstmac managing director Kim Cannon is “disappointed” that Treasury rejected the non-bank’s proposed acquisition of Maleny Credit Un...

Asset finance group Consolidated Operations Group has announced that it will “scale back” its equipment leasing but will continue its as...

Half of Australian businesses have already been hit by the economic fallout from the coronavirus outbreak, with approximately 86 per cent ex...

FROM THE WEB
podcast

LATEST PODCAST: The rush to save small businesses

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.