FSA ban 'may boost flats to rent in London'
More people may be encouraged to look for flats to rent in the London borough of Brent after one expert branded the Financial Services Authority's (FSA's) ban on fast-track mortgages as "illogical".
Ray Boulger, senior technical manager at broker John Charcol, suggested there is no justification for the decision as these types of home loan have had greater performance in terms of repossessions when compared with other products.
He said their argument for banning self certification mortgages lay in the idea that "there is a higher risk of default and that is true, but to then ban fast track despite the fact that they perform better seems completely illogical".
What may persuade more would-be buyers to look at flats to rent in London is his indication that administrative costs are likely to go up as a result of the action, which would be passed on to borrowers.
The FSA's proposals had been intended to increase the assessment of possible mortgage holders.
By Ben Carter
Published 14th July, 2010
© 2010 Estates IT Limited
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Will flats to rent in the London borough of Brent be a popular choice after a ban on fast-track mortgages?