Borrowers 'may be subject to increased checks'
Mortgage lenders will have to carry out more comprehensive credit checks of potential borrowers, under new proposals from the Financial Services Authority.
It is hoped the proposals will clamp down on irresponsible lending, although first-time buyers may be concerned that this could hinder their chances of buying a home.
With this in mind, it could be said that flats to rent in Kensington or another part of London are a more affordable alternative to buying.
Commenting on the news, Katie Tucker, technical manager at mortgageforce, said: "Lenders' credit scoring is already painfully stringent for first-time buyers now."
She added that while such regulations can have benefits, a blanket regulation can be a "very expensive and inefficient way" to impose lending rules.
The Financial Services Authority has also proposed banning self-certified mortgages and arrears charges if a borrower is already repaying.
Meanwhile, the Council of Mortgage Lenders recently reported that the number of new mortgage approvals decreased by five per cent in August 2009.
Written by Ben Carter
Published 20th October, 2009
© 2009 Estates IT Limited
London Rental Property News By London Borough / Category
Latest London Property News Headlines
Living in London doesn't have to mean tolerating the daily urban upheaval and hustle and bustle of the centre. The capital caters for all tastes and those living around Regents Park will uncover a more rural part of the city, with a thriving community and an easy-going lifestyle. Read on for details of what this gorgeous part of town has to offer - besides leafy tree-lined streets and a sense of traditional Ye Olde England.
Read Article ... Published on 23rd May, 2013
Residents living on the Woodberry Down estate located in the London borough of Hackney are being asked for their opinion on the best way to spend a £20,000 grant, allocated with a view to improving healthy living in the area.
Read Article ... Published on 21st May, 2013
Households in the London borough of Westminster will save a collective £80,000 a year through a new collective energy switching scheme, implemented by the council earlier this year in order to help residents deal with spiralling utility bills.
Read Article ... Published on 20th May, 2013
The London borough of Lewisham was out with intent to party on Wednesday night (May 15th) with the community celebrating the success of more than 50 apprentices as part of its Apprenticeship Framework scheme.
Read Article ... Published on 17th May, 2013
Unsung heroes residing in the London borough of Hammersmith and Fulham yesterday (May 15th) received their deserved recognition at a special celebration last night to honour special contributions to the community.
Read Article ... Published on 16th May, 2013
Ealing council is taking a step towards helping local young people in need of a job throughout the London borough, with the advent of a new programme that will see local businesses encouraged to hire young people as part of its apprenticeship scheme.
Read Article ... Published on 15th May, 2013
The Royal borough of Greenwich has this Sunday (May 12th) signed an agreement that will see the district play host to the first Tall Ships event in 25 years.
Read Article ... Published on 14th May, 2013
Living in Knightsbridge offers luxurious living at its best. Despite humble origins, the district has become reputable for two things - firstly for being one of the two international epicentres of London (the other being the West End). And secondly, its array of affluent department stores including Harrods, Harvey Nichols and the plethora of elegant stores in Sloane Square and Beauchamp Place, have made it the envy of the world when it comes to shopping.
Read Article ... Published on 13th May, 2013
The newly appointed mayor of Islington has pledged that the area will become a "fairer" place for all residents under his watchful eye.
Read Article ... Published on 10th May, 2013
People residing in the London borough of Hammersmith and Fulham could soon be seeing a lot of new faces around their local area, with the council having just approved one of the most ambitious housing projects in history for the district.
Read Article ... Published on 9th May, 2013