Your location: FSA 'must use its teeth'
28 October 2008
New figures released by the Financial Services Authority earlier today revealed the number of people losing their homes has increased by 71 per cent in one year.
In the three months to the end of June, 11,054 homes were repossessed, compared with just 6,476 during the same period in 2007, according to the FSA.
In response, Shelter's chief executive Adam Sampson said: ‘These figures are not only shocking and worse than expected, they highlight the crippling severity of the credit crunch on ordinary homeowners.
‘It is easy for the FSA to issue new figures highlighting the problem, but as the key financial regulatory body it must start using its teeth to stop lenders rushing to court to repossess people's homes.
‘Tougher regulation should be backed by the Government using even stricter measures than the guidance it announced last week to force lenders and the courts to only repossess homeowners as a last resort.
Mr Sampson added: ‘Shelter's free and confidential helpline has seen a rise in repossessions calls of almost 167 per cent in the last six months. The Government and the FSA must take immediate action to stop so many people losing their homes. There must be a package of measures to help those who lose their homes, like more protection for renters whose buy to let landlords are repossessed and a more flexible approach to people in arrears.
‘The Bank of England should also cut interest rates. A one per cent cut would be a massive and much needed saving of more than £120 a month on a mortgage of £200,000’.
