12-12-2007
Citizens Advice expresses concerns over homeownership
Citizens Advice has expressed concern over the way the sub-prime mortgage market has led to a devaluation of homeownership.
The organisation, a UK-based charity established in 1939, believes that while the government's aim of encouraging homeownership is "laudable", it has been affected by those on low incomes who have taken sub-prime loans, only to find they are now heavily indebted.
"The cavalier behaviour of some brokers and sub-prime lenders is seriously undermining homeownership and hitting the most vulnerable borrowers hardest," said David Harker, chief executive of Citizens Advice.
"Our research suggests that many aspiring homeowners have been mis-sold unsuitable and costly home loans that are doomed to fail from the start," he added.
Indeed, a report from Citizens Advice - entitled Set up to fail - has found that the recent increase in things such as repossession and mortgage arrears are the consequence of a number of factors, including poor lending decisions and questionable advice.