Treating borrowers as grown-ups could help cut ISMI costs
Share
have just read your story regarding the news that the Council of Mortgage Lenders is calling on the government to commit to maintaining its Income Support for Mortgage Interest scheme or risk rising repossessions, and noted a comment claiming that “if you can’t pay your mortgage you shouldn’t have one”.
I understand this sentiment and yes, borrowers need to be brought to account. But there must be some support for those in need of help.
Also, while the emphasis should be on advisers to do checks on affordability the government should get tougher on borrowers and the FSA for not addressing the question of borrowers who find it all too easy to blame brokers for their woes.
All borrowers are over 18 and therefore adults. They can’t blame anyone else so they should bear the responsibility and grow up.
As for the FSA, one of the best descriptions I’ve heard is that it’s like a council tenant who has no idea where their kids are and no sense of direction in life, but has suddenly have been suited, booted and put in charge of a complicated system they only understand in their dreams.
Of course, it’s not quite sure what it wants to do so it reads a couple of headlines in local newspapers, then looks in the mirror and talks to itself with a recording tape which is passed on to unfortunate enforcers who do not understand anything either.
It may surprise you to learn that this description came from an FSA staffer. I hope some serious people will now take charge.
So borrowers, please wake up.
And FSA, please contact brokers and get a feel of what’s going on in market - you have no idea what we have to deal with in Manchester and other deprived areas.
One big problem is borrowers lying, thinking they can get away with it. And indeed, when they are caught they are not punished.
It’s time the law addressed issues such as this. Not only would it help educate clients but it would also cut the number of ISMI claimants, and that would benefit us all.
NAME AND ADDRESS SUPPLIED
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
