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Government warns about rising credit card debt Debt - the 12-month view Amount of `bad debt` written off reaches 16-year high Deeper into debt: middle-class poverty Debt taken on by individuals increased in January Debt Relief Order (DRO) rules may be changed Overdrafts: five million Britons `permanently` in debt Mortgage lending drops to decade low The cost of debt falls Two thirds hope to have cleared mortgage debt by 50 40% of people approaching retirement `saddled with debt` Repossession `may be best` for homeowners struggling with debt Bankruptcies in Scotland - the worst may be yet to come Good news for people with energy debts US: new law provides debt-free date More debt taken on than repaid in December Savings rise as consumers pay down debt Household debt `could trigger another downturn` More families could fall into debt with energy companies Recession ends

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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Government warns about rising credit card debt 05/03/2010 - The latest figures from the Bank of England (BoE) have Debt - the 12-month view 04/03/2010 - In January, UK citizens - between them - borrowed £500 Amount of `bad debt` written off reaches 16-year high 03/03/2010 - The latest figures from the Bank of England (BoE) suggest Deeper into debt: middle-class poverty 02/03/2010 - The recession has also affected a lot of people with