The Financial Services Authority (FSA) is about to take action against five brokers which sell sub prime mortgages.
This follows a review of the property market in which it stated that certain mortgage lenders and brokers offer loans to people who ought not to be given them.
Sub prime mortgages are the ones sold to individuals with poor credit histories; therefore, they are at a higher risk of defaulting.
The FSA discovered examples of individuals being offered mortgage deals which they may not be able to afford.
There could be really serious consequences of such actions.
The mortgage market regulator is very concerned about this situation as vulnerable people who could already have a great deal of debt or a bad credit history could end up in an even worse situation.
Hence, it is of paramount importance that they are thoroughly assessed and properly advised.





