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Homeowners to get more protection on their mortgages

The Government is introducing new measures to provide better mortgage protection for homeowners - particularly those with second charge mortgages.

It plans to transfer the regulation of new and second charge residential mortgages from the Office of Fair Trading to the Financial Services Authority. Ministers believe this will ensure consistent standards of consumer protection and simplify the regulatory environment for lenders and borrowers.

Finance minister Mark Hoban said: "This will ensure that existing second charge mortgage borrowers who fall into arrears or face repossession on both first and second charge mortgages benefit from being regulated by a single organisation, maximising consumer protection and ensuring a more coordinated approach between lenders."

The new measures will also ensure that consumer protection is maintained when a mortgage lender sells on a mortgage to an unregulated firm. The Government will also extend the current regulation of the sale and rent back market to all providers to maintain consistent protection for consumers.

It’s expected that the new measures will be in place before the end of the year.

Please contact us if you would like more information about the issues raised in this article, or any aspect of mortgages and the buying and selling of residential property.

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