War of words as FSA hits back at lenders

Mortgage lenders have hit back at the Financial Services Authority (FSA), after the regulator criticised their repossession policies.

The FSA warned last week that it would initiate action against lenders who were to aggressive to customers falling behind with their mortgage payments. They found the potential problems with repossession policies were so widespread, an industry-wide warning was issued.

However, the Council of Mortgage Lenders (CML) believes the FSA is wrong to tar the whole industry with the same brush. This unusual public argument between the two bodies hinges around a press release published on 5 August. The FSA revealed findings of a ‘thematic review’ of the industry, which concluded that some lenders are too aggressive with customers at risk of losing their homes.

The FSA acknowledged that these more aggressive approaches were more typical of specialist lenders.

However, the CML had concerns about the FAS’s findings, saying that they could confuse lenders and mislead the public. They responded to the press release in their fortnightly newsletter:

“But in tarnishing the whole industry with the same dirty brush, is the regulator treating lenders fairly?

“To publish a report in such ambiguous terms is unfair and confusing for the majority of lenders who are making significant efforts to comply with industry rules.”

Repossessions are on the rise according to recent figures, going up by 41% in the first half of the year.

Even if you are facing repossession, Swift Capital could help you complete a quick house sale and purchase your property in a matter of days. We will consider any type of property and you could even stay on as a tenant after the sale if you wish.

For confidential, independent and expert financial advice on completing a fast house sale, contact Swift Capital´s FSA registered independent financial advisor for more information.