CCCS applauds FSA self-certified mortgages proposals

Date:Wednesday 14th July 2010
Author: Susanna Kavka

The Financial Services Authority (FSA) self-certified mortgages proposals will help to protect consumers, according to the Consumer Credit Counselling Service.

Chairman of the debt charity Malcolm Hurlston explained that plans to prohibit such home finance products will mean that people with a history of debt problems may not be able to commit to buying a property they cannot afford.

"Buying a home ... is a huge step. It is the biggest financial decision that most people will have to make, so it is important that they make the right choices," he said.

In his opinion, the first house a person or couple buys is a particularly momentous transaction, so it is vital that they are well informed.

The CCCS has welcomed FSA self-certified mortgages plans to prohibit the sale of such products, noting that it could help prevent reckless lending.

Last month, the organisation applauded the FSA for its proposals relating to arrears penalties, suggesting they will be welcomed by many consumers.