New city watchdog opens its doors
HOA calls on the Financial Conduct Authority to support homeowners by challenging unfair contracts and to not allow mortgage lenders to shirk their responsibility with those who are affected by the clamp down on interest-only mortgages
April 2, 2013
The new Financial Conduct Authority (FCA) opens its doors on the 1st of April with the promise to better protect homeowners and consumers against mis-sold and dodgy financial products and deals. Its predecessor, the Financial Services Authority (FSA) presided over the scandals involving payment protection insurance and endowment policies.
Martin Wheatley, chief executive of the FCA, has insisted that the body will focus more on consumers than its predecessor. Let’s hope he manages to do just that. The HomeOwners Alliance calls on the FCA to support homeowners by challenging unfair contracts with mortgage lenders and fight on their behalf when the banks renege on their promise. The Bank of Ireland just last month announced a rate rise for some of its lifetime tracker mortgages, in spite of the Bank rate being stable at 0.5%.
We also call on the FCA to support those homeowners with interest-only mortgages who are affected by the tightening of regulations, introduced by its predecessor.
As we reported in On the Edge, these changes will push many homeowners to the edge of what they can afford to keep their home. Mortgage companies must not be allowed to shirk their responsibility. They tempted homebuyers with these cut-price deals in the first place, and they must not abandon them now.