A very worrying article on BBC News this morning reporting that there has been some evidence of mis-selling in our mortgage market. The reports claim that people are being ‘advised’ to exaggerate their salaries in order to get a mortgage and a way of finance brokers to close a deal.
The Financial Services Authority (FSA) is planning a full investigation and tough actions when dealing with those involved.
It seems to have affected the sub-prime section of the mortgage market more than any other as most of the applicants tend to be self-employed and need a self-certified mortgage. Some borrowers have tended to exaggerate their income and the lenders haven’t followed up to check whether it is an accurate and realistic statement.
It highlights the problems we are starting to encounter now though with this irresponsible attitude towards lending and borrowing, a family who were advised to report their earnings were double what they were, are now in financial dire straits and have been close to having their home repossessed.
Read the full article here
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