MPs could cross examine lenders over repossessions and home loans
It has been reported recently that some lenders in the UK could face questioning from MPs next month over two issues that have been at the forefront of the news for some time, and this includes the rising levels of repossessions in the UK and the plunging levels of home loans available to consumers.
The move could come as part of a Treasury Select Committee enquiry, and it was announced earlier this month.
Part of the aim of this process is to try and determine how effective the various government schemes and initiatives that have been put into place have been.
A number of measures have been taken by the government to try and reduce the number of people losing their homes in the UK, as well as to increase the flow of credit available to those looking for mortgage loans, and the enquiry wants to gauge whether these initiatives and measures are having the desired effect.
One member of the Treasury Select Committee, Sally Keeble, explained a little about how the process would work.
She stated: “We will want to speak to constructive lenders, such as Nationwide, as well as those who perhaps are on the wrong track, to get to the heart of the problems in the market.”
Another official added: “The evidence is that the initiatives that the Government has implemented have had a positive impact and we are seeing a flexible attitude by lenders.”
Over recent months there has been a lot of concern over how many repossessions will take place over the course of this year, and the Council of Mortgage Lenders had predicted it could be as high as 75,000. However, it has now revised this figure downwards, indicating that some measures could be having the desired effect.
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