'The show must go on'

Uncertainty in the market does not mean homeowners can stop repaying their mortgage, according to the Financial Services Authority (FSA).

The FSA has reminded property owners that a mortgage is just a loan secured on their home and failure to meet repayments could result in repossession.

Commenting on the importance of staying on top of mortgage repayments, the FSA said: "To suggest otherwise, or even to pose the question at a time of such uncertainty without providing the facts to consumers - as some irresponsible bloggers have done - does not help anyone."

With the Lehman Brothers collapse some homeowners have questioned the future of their mortgage, but the FSA stated that the British mortgage arm of the US investment bank has not collapsed and is operating as usual.

The FSA reiterated that even if the lender goes bust the mortgage contract remains valid.

In related news, Bradford & Bingley has renegotiated a finance deal with American investment firm GMAC-RFC reducing the financial pressure on its mortgage book by £1 billion.

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