FSA Concerned Over Growing Number of High LTV Mortgages
A recent report on UK financial system prospects, published by the Financial Services Authority (FSA) on March, 17th 2011, suggests that Great Britain might face another economic downturn.
The reason for this is the growing number of mortgage that exceed borrowers' income 3-3.5 times.
Lord Adiar Turner, FSA chairman, said that banks need to be aware of the fact that such mortgages are potentially dangerous for the UK economy.
He highlighted that while low mortgage interest rates make expensive loans affordable to many, UK lenders should make "sure that such mortgages will remain manageable for borrowers when interest rates normalise."
The Financial Services Authority warned borrowers against taking out tracker mortgages because they are considered to be the riskiest type of financing in the current economic environment.
Those who need to compare mortgage deals from UK banks can use comparison websites and then contact lenders in person to see if they qualify for a loan.
Most popular searches: first time buyers mortgages
The most appropriate option will be to see a mortgage advisor, who can assess the situation and recommend the most affordable and appropriate solution available on the market, while banks can offer only their own products and comparison websites just offer different products not advice.