Jump to full article: Times Of London (uk), 2009-10-19
Author: Elizabeth Judge
Intro: Homebuyers could be forced to provide detailed information about the amount of money they spend on alcohol each month to qualify for a new mortgage under a new clampdown on reckless lending.
In a sweeping review of the mortgage market published today, the Financial Services Authority (FSA) said lenders needed to be far more rigorous about their financial checks of potential borrowers.
It said lenders should delve deeper into homebuyers' personal spending including the amount they spend on alcohol and tobacco. . . .
The new measures, which aim to stamp out risky lending that has been criticised for compounding the financial crisis and tipping hundreds of thousands of homebuyers into negative equity, also include a plan to ban self-certified mortgages, dubbed "liar's loans", and to stop lenders from exploiting consumers who have fallen behind on their mortgage payments.
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