Mortgage repayment problems not as bad as the 90s

The level or arrears and repossession should be lower than the early 1990s, the head of the Financial Services Authority (FSA) said yesterday, as the short-term financial position of many borrowers had been improved by low interest rates. Lord Turner added he is still considering regulating the size of mortgages being made available – limiting their amounts to the value of the property or the borrower’s income. He also warned that early indications suggested the buy-to-let market may produce ‘significantly higher arrears and defaults than owner occupiers’.