Five questions answered on the new mortgage rules

Will affect 1 million borrowers.

The FSA has announced they will be introducing a new set of rules for mortgage lending. We answer five questions on these new rules.

What is the basic gist of the new rules?

Borrowers must satisfy mortgage lenders they can repay the mortgage – mortgage lenders must in turn check these assurances. Those looking to borrow from an interest only mortgage must prove they are not relying on rising house prices alone to repay the home loan. There will be no age limit on taking out a mortgage. If you earn more than £300,000 or have more than £3 million in assets you will face a less stringent assessment. Borrowers trapped in old mortgage deals will be given some leeway to remortgage, despite these new laws.

Why are the FSA introducing these new rules?

To curb risky lending. The FSA want to encourage more responsible lending and borrowing in the mortgage market to avoid a repeat of risky lending that saw many homes on the brink of being reposed during the financial collapse.

When these new regulations come into action?

These new regulations will come into effect on the 26 April 2014. However, many of these practices are already being used by mortgage lenders.

What will this mean for people trying to get on the property ladder?

That it will be a longer, more thorough process getting a mortgage and self-certified mortgages – where the lender does not seek proof of income – will effectively be ruled out. This may make it harder for around 11.3 per cent of borrowers (1.3 million) and in particular self-employed workers to get a mortgage.

What have the FSA said?

Martin Wheatley, managing director of the FSA and CEO-designate of the Financial Conduct Authority (FCA), said: “These new rules will help create a more sustainable market that works well for everyone, whether they are a borrower or a lender.

“We recognise that many lenders are now using a far more sensible set of lending criteria than before, but it is important that these common sense principles are hard-wired into the system to protect borrowers.

“We want borrowers to feel confident that poor practices of the past, which led to hardship and anxiety, are not repeated.  At the heart of the new measures is an affordability test to check borrowers can meet the repayments of the mortgage they want.

“To ensure the measures are effective but practical we spent a great deal of time discussing our proposals with consumers, firms, parliamentarians and numerous other stakeholders. I am therefore very confident that we have come up with a set of rules that are proportionate and sensible, and will create a more sustainable mortgage market where consumers are put at the heart of every decision.”

The FSA have announced new rules. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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The economics of outrage: Why you haven't seen the end of Katie Hopkins

Her distasteful tweet may have cost her a job at LBC, but this isn't the last we've seen of Britain's biggest troll. 

Another atrocity, other surge of grief and fear, and there like clockwork was the UK’s biggest troll. Hours after the explosion at the Manchester Arena that killed 22 mostly young and female concert goers, Katie Hopkins weighed in with a very on-brand tweet calling for a “final solution” to the complex issue of terrorism.

She quickly deleted it, replacing the offending phrase with the words “true solution”, but did not tone down the essentially fascist message. Few thought it had been an innocent mistake on the part of someone unaware of the historical connotations of those two words.  And no matter how many urged their fellow web users not to give Hopkins the attention she craved, it still sparked angry tweets, condemnatory news articles and even reports to the police.

Hopkins has lost her presenting job at LBC radio, but she is yet to lose her column at Mail Online, and it’s quite likely she won’t.

Mail Online and its print counterpart The Daily Mail have regularly shown they are prepared to go down the deliberately divisive path Hopkins was signposting. But even if the site's managing editor Martin Clarke was secretly a liberal sandal-wearer, there are also very good economic reasons for Mail Online to stick with her. The extreme and outrageous is great at gaining attention, and attention is what makes money for Mail Online.

It is ironic that Hopkins’s career was initially helped by TV’s attempts to provide balance. Producers could rely on her to provide a counterweight to even the most committed and rational bleeding-heart liberal.

As Patrick Smith, a former media specialist who is currently a senior reporter at BuzzFeed News points out: “It’s very difficult for producers who are legally bound to be balanced, they will sometimes literally have lawyers in the room.”

“That in a way is why some people who are skirting very close or beyond the bounds of taste and decency get on air.”

But while TV may have made Hopkins, it is online where her extreme views perform best.  As digital publishers have learned, the best way to get the shares, clicks and page views that make them money is to provoke an emotional response. And there are few things as good at provoking an emotional response as extreme and outrageous political views.

And in many ways it doesn’t matter whether that response is negative or positive. Those who complain about what Hopkins says are also the ones who draw attention to it – many will read what she writes in order to know exactly why they should hate her.

Of course using outrageous views as a sales tactic is not confined to the web – The Daily Mail prints columns by Sarah Vine for a reason - but the risks of pushing the boundaries of taste and decency are greater in a linear, analogue world. Cancelling a newspaper subscription or changing radio station is a simpler and often longer-lasting act than pledging to never click on a tempting link on Twitter or Facebook. LBC may have had far more to lose from sticking with Hopkins than Mail Online does, and much less to gain. Someone prepared to say what Hopkins says will not be out of work for long. 

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