Charity calls for exams for first-time buyers
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Malcolm Hurlston, chairman of national debt charity Consumer Credit Counselling Service says mortgages for first-time buyers should be sold like driving licences and people should have to sit exams.
In a speech today at the CCCS Annual Convention Hurlston called for the Financial Services Authority to issue home ownership certificates to anybody buying a first home
He said that pre-mortgage counselling had already been launched in the United States by the Department of Housing and Urban Development and that the UK should follow its lead.
He said that those most likely to have a debt problem in Britain are those on low incomes who have wrongly, or too soon, embarked on home ownership:
He says: “Home ownership is a lifestyle choice but a trap for many.
“First-time mortgages should be sold not with pretty ribbons and tax breaks but with health warnings.
“They should be sold like driving licences, after study and an exam.”
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Readers' comments (21)
Anonymous | 28 Apr 2010 5:27 pm
What a ridiculous idea. What about second time buyers. Maybe they were prudent with a starter home and are about to embark on a 5x income mortgage. Surely this too would be risky? Lets also have an exam for anybody purchasing a car, or for that matter about to pay more for the weekly shopping than usual. We are not America. Our mortgage industry is regulated and as such does not require more nannying. 'I am sorry Mr and Mrs X, you can't have a mortgage as you have not passed the exam. why don't you rent and pay more than any mortgage you cannot have?' Anybody fancy saying this to a client?
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Tom Cleary | 28 Apr 2010 5:29 pm
Can we get Malcolm Hurlston to sit an exam to see if he is in possession of all of his mental faculties? This is the craziest suggestion I have ever heard...
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Anonymous | 28 Apr 2010 5:33 pm
Is this man living in the real world. Will I have to sit an exam when I next go to hospital to see a Consultant to make sure I understand what treatment I am likely to undego? This regretably is symptomatic with our society as a whole at the moment.
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Anonymous | 28 Apr 2010 5:36 pm
A step in the right direction? For too long it has been TOTALLY our (the adviser's) fault if it goes pearshaped - the FSA taking Caveat Venditor to the extreme - bring back Caveat Emptor!
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Anonymous | 28 Apr 2010 5:39 pm
I can see it now....
FTB: I would like to get a mortgage please
Broker: OK, have you got your H.O.C?
FTB: Oh yes, I got 95% which is a distiction
Broker: Great, fistly we need to get you a DIP and then you can view some properties. Oh, and don't forget to read through the HIP before putting an offer in.
And which lender is selling first time buyer mortgages with pretty ribbons and tax breaks?
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Anonymous | 28 Apr 2010 5:40 pm
Wake up Malcolm...
What next a licence to give birth!
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Roland Millward | 28 Apr 2010 5:43 pm
Oh what a Nanny world we live in. Yes. IT IS ALWAYS SOMEBODY ELSE'S FAULT!
To make sure that it is isn't lets set exams! Can we not let people decide for themselves how they spend their money or live their life? Whether the decision to buy a home is good or bad you will never really know until things happen that sometimes people have no control over or sadly they make mistakes. It is called life!
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Dermot Brannigan | 28 Apr 2010 5:48 pm
Is this guy Nick Clegg is disguise? Just let the market decide. Home ownership is not a right. Tenants build up debts too and people have to take responsibility for themselves.
So what will the penalty be if you pass this exam, buy your own home and still get into trouble with your debts?
Still, its a great way of creating more civil service jobs to monitor it all. Just what we need right now!
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Anonymous | 28 Apr 2010 5:51 pm
I read this article and thought it was so stupid I would have to comment, but the previous people have said it all. People make choices and if they feel they need more information then they look for it. Isn't that better than a self appointed group or QUANGO, telling us they know better.
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David | 28 Apr 2010 6:03 pm
I just checked the calender to see if it was the 1st of April!
Tell this guy to get a life, as if there are not enough problems this brain donor wants to add another tier of beurocracy. I'll do him a deal, I won't try and run a Charity if he promises not to pontificate on Financial Services
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