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More than 4 million fear they`ll be made redundant Consumers took on more mortgage debt in July Debts called in by parents Teenagers `scared of debt` Rising household costs could pressure people in debt Pensions debt may impact workers` retirement funds Welsh young adults `at highest risk of debt problems` Over 50s can`t afford to enjoy retirement because of debts Budget: tackling the nation`s debt Short-term debt: `no need for price control` The cost of clearing debt Education debt Tackling the national debt Number of mortgage deals on offer exceeds 3,000 Almost 5 million take on debt to pay household bills OECD: household debt more than 120% of disposable income Petrol price falls help people in debt Amount of mortgage debt taken on at lowest level in ten years Northern Ireland sees significant IVA rise Overdraft debt `becoming more expensive`

Homebuyers could face `affordability tests` to get a mortgage

26/10/2009

According to the Financial Services Authority (FSA), homebuyers could face `affordability tests` before their application for a mortgage is accepted, the Times reports.

The new tests would require lenders to take a detailed look into homebuyers` personal spending (on clothes, childcare, alcohol, etc.) to assess their ability to repay their mortgage debt.

New measures also include a plan to ban self-certified mortgages, and to stop lenders from `exploiting consumers` who have fallen into arrears on their payments towards their mortgage debt.

In its review of the mortgage market, the FSA said: "There is clearly a responsibility on all lenders to extend credit only where a consumer can afford it and, in our view, a robust assessment of both income and expenditure is key to ensuring affordable mortgages.

"We propose to require all lenders to assess the level of a consumer`s expenditure in determining the affordability of a mortgage product, to ensure that lending decisions are based on a consumer`s free disposable income."

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More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according