Addressing a discussion, Financial Capability: Making informed decisions about mortgages, held at the House of Commons last week, the FSA said the baseline survey is progressing well.
Part of the regulator's remit is to help the public understand financial issues and ensure they do not buy unsuitable products. The industry and politicians agree that it is vital to help people understand finance so they can avoid getting themselves into dire straits.
Stephen Knight, chairman of discussion sponsor GMAC-RFC, says: “We want to encourage people to own their own homes and repossession should be avoided.”
To help people assess their affordability credit checking agency Experian is developing a self- assessment tool that will specifically target borrowers on the brink of indebtedness.