CML media note on today’s issue of News & Views
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Wednesday, 13, Aug 2008 12:00
It’s not surprising that the plethora of information about mortgage arrears and possessions is creating some confusion. Today’s issue of our newsletter, however, should help make things a little clearer. We look not just at what our own recent data shows, but also what the Financial Services Authority (FSA) and Ministry of Justice are reporting.
We also look at negative equity – a subject that is attracting increasing media coverage and speculation. But while there is no shortage of statistics on arrears and possessions, there is unfortunately no reliable data on negative equity. So, how much of a problem is it? The credit crunch – and wider housing market conditions – are encouraging more conservative lending criteria, which at least provides greater protection from negative equity for borrowers and lenders. Of course, negative equity, in itself, does not mean that borrowers are at any greater risk of being unable to pay their mortgage or of repossession. The trigger for payment problems is usually a change in personal circumstances, affecting a borrower’s ability to keep their mortgage commitments.
Finally, we reflect on how the FSA publicised the findings of its recent thematic study on mortgages. The regulator found that mainstream lenders were, in fact, largely complying with FSA requirements.
Visit our website to read the latest issue of CML News & Views
Sarah Robson
Press officer
Council of Mortgage Lenders
Tel: 020 7438 8922
Website: www.cml.org.uk
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