Interest Only is it really a ticking time bomb?
The MMR clearly retains the overarching ‘responsible lending’ rule, but one of the key elements of the reforms specifically focusses on interest only. In a nutshell, from April 2014, when the new rules kick in, lenders must assess affordability on a capital and interest basis, unless there is a clearly understood and believable alternative source […]
The Importance of Valuation Instructions
Phimister v DM Hall LLP [2012] CSOH 169 The issue was the scope of the surveyor’s duty to a purchaser. Phimister sought damages from DM Hall for professional negligence in respect of a mortgage valuation report, on the grounds that the firm owed him a duty of care to check the area of the property […]
Can you afford not to keep your records up to date?
We first reported on the accuracy of data held by lending institutions in June 2011, but it appears the issue is far from being resolved. The recent fine levied by the Financial Services Authorities (FSA) on Bank of Scotland (BOS) for failures within their systems to keep accurate mortgage records for its customers, highlights there […]
Tenant Arrears
A recent survey by a Law of Property Act receiver estimates that there are 99,000 tenants that are two months overdue on rent. This will be unwelcome news for any holder of a buy to let mortgage portfolio, and although it does not automatically follow that tenant arrears result in a landlord not being able […]
RMBS – is there hope on the horizon?
Bank deleveraging and cheap central bank funding schemes are constraining European securitisation volumes, and Standard & Poor’s Ratings Services believes that UK residential mortgage-backed securities (RMBS) issuance could fall again this year. That said, some specialised mortgage market segments – such as buy-to-let – have begun to slowly re-emerge, which could be mildly positive for […]
The next mis-selling scandal?
LPA receivers Rockstead is uniquely placed in the mortgage review market since we have business relationships with lawyers requiring expert witness services and holders of mortgage assets requiring servicer audits. Responsible partners often ask us to predict the next mortgage market issue so they can take a proactive role in the management of such issues. […]
Reviving the asset backed securities market
The Association for Financial Markets in Europe (AFME) has launched its Prime Collateralised Securities (PCS) label aimed at reviving Europe’s ailing asset backed securities market. The initiative will develop a badge for Asset Backed Securities (ABS) that comply with quality, transparency, simplicity and standardisation benchmarks to help restore secondary market liquidity and boost the investor […]
FSA Oversight
The recent announcement by the Financial Services Authority (FSA) that it expects bridging lenders to behave with “the same high standards” on unregulated business as on regulated business has opened up an interesting debate. We have long held the view that a regulated lender entity has an overriding responsibility to behave in an appropriate manner […]
Interest Only – a thing of the past?
Even before the FSA Mortgage Market Review consultation, true interest only mortgages were coming under fire. Lenders are tightening their criteria and making it more difficult for customers to obtain interest only mortgages. Some lenders are now forcing customers with loans over a specific loan to value or even loan size to pay their mortgage […]
FSA Regulation
Regulation of the Mortgage Trading Market The Financial Secretary to the Treasury announced a package of measures last month, intended to enhance consumer protection in the mortgage market. As part of the measures third party administrators and firms that buy mortgage books will now need to be regulated by the Financial Services Authority. It notes […]
