CAB welcomes closure of house buying loopholes

Regulations set to be introduced that will close loopholes open to mortgage providers and better protect borrowers have been welcomed by the Citizens Advice Bureau (CAB).

The new regulations will enhance consumer protection for those with mortgages, secured loans and sale and rent back agreements, which could include those involved in DIY house selling deals.

Commenting on the new legislation, CAB social policy officer Peter Tutton explained: "We are pleased that the government is acting to close loopholes in the mortgage and sale and rent back rules that otherwise could cause serious detriment to homeowners."

The new rules will ensure that Financial Services Authority consumer protection safeguards still apply to a firm that buys existing mortgages from a mortgage lender.

Regarding sale and rent back providers specifically, regulations will be amended to ensure that providers cannot take advantage of an exemption enabling them to get around existing rules.

  • Property News from Lawpack: buying or selling your own house? Straight-forward advice on DIY house selling.

Published on: January 31, 2011

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