Online News
Home owners given new protection
Added 06/07/2010
The Financial Services Authority (FSA) has introduced new rules to ensure individuals who fall behind with their mortgage payments receive fair treatment from their lenders.
Once an agreement for repaying the arrears has been made, firms must not apply a monthly fee, and the payments made have to be used for the mortgage instead of charges, which can be repaid later.
Lenders will also need to record all calls with homeowners who are in arrears and keep them for three years.
New rules have also been introduced for sale and rent back arrangements, where an individual sells their home, but remains as a tenant.
High-pressure sales techniques are now forbidden, as are cold calling and leaflet drops. Customers will have a 14-day cooling off period, as well as a guaranteed tenure of at least five years. This will stop unprincipled firms from evicting tenants after 6-12 months, as has previously been the case.
