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Banks: Loans

Volume 496: debated on Wednesday 16 September 2009

To ask the Chancellor of the Exchequer if he will take steps to prevent banks targeting loans and remortgaging packages to people approaching state retirement age. (291349)

For some people approaching state retirement age, mortgages can be an appropriate way of helping to manage their finances. The Government are determined, however, that lenders treat all customers fairly.

In 2004, the Government extended the scope of Financial Services Authority (FSA) regulation to include mortgages. The FSA’s regime requires lenders to treat customers fairly, and offers consumers protection by requiring that, for example, firms satisfy themselves that a mortgage commitment is affordable.

The FSA publishes guidance for lenders on how they should deal with mortgages that will run into retirement. This guidance is available on the FSA’s website at: