John Charcol backs mortgage arrears proposals

The proposals to protect mortgage holders in arrears are "very reasonable", according to one mortgage lender.

Earlier this week, the Financial Services Authority FSA announced measures including stopping lenders charging monthly fees to customers who meet agreed repayment schedules.

Commenting on the move, Ray Boulger, senior technical manager at John Charcol, said the new regulations would avoid putting further pressure on people who have gone into arrears.

However, he added that they are unlikely to further deter lenders from repossessing properties.

Mr Boulger said recent political pressure has already encouraged firms to adopt an "accommodating" approach to struggling homeowners.

"Lenders want repossessions to be a last resort anyway, because repossessions are bad news for lenders just as they are bad news for borrowers," he said.

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2010-01-29 12:43:43 © Moneyextra.com