View more on these topics

Cheshire Mortgage Corp changes contract terms after regulator’s check

Sub-prime lender Cheshire Mortgage Corporation has changed the wording of some of its mortgage contract terms after the FSA labelled them unfair.

Cheshire Mortgage Corporation is a subsidiary of the Blemain Group.

The FSA says the wording in two Cheshire information booklets printed in 2004 and 2006 were unfair because it gave the firm “unrestricted power to vary interest rates without the firm specifying valid reasons for making such variations in the contract.”

A term in the 2006 version of the booklet says: “Where the interest rate on your mortgage is variable (at any time during your loan period) we can vary the interest rate at any time. You will be notified of any change in accordance with the mortgage conditions. The notification will include details of the resulting increase or decrease in your monthly payment.”

The FSA says: “We consider that the terms, as drafted, had the potential to cause consumer detriment because they could result in monthly mortgage payments being increased in an unpredictable and non-transparent way.”

The company changed the wording of the term for new customers in February. It now says the rate of the mortgage could increase or decrease depending on funding costs.

Lentune Mortgage Consultancy director Stuart Gregory says: “It is good to see the regulator taking action like this but it has got to be consistent, especially as lenders have been changing their criteria a lot recently.”

Recommended

Budget 12: Govt to cut corporation tax to 24% next month

Chancellor George Osborne has confirmed corporation tax will be cut to 24 per cent next month. Giving his Budget speech today, the Chancellor said corporation tax will fall from 26 per cent to 24 per cent next month, rather than the planned reduction to 25 per cent. Osborne confirmed corporation tax would then be cut […]

OFT gives go-ahead to Mortgage Brain and MortgageStream merger

The Office of Fair Trading has given the go-ahead for Mortgage Brain to acquire MortgageStream. The OFT announced in January that it was stepping in to investigate the proposed acquisition over fears it could substantially lessen competition in the market. But a spokesman for the OFT says: “The OFT has decided, on the information currently […]

6

Budget 12: State pension to be linked to life expectancy

Chancellor George Osborne has confirmed future increases in the state pension age will be linked to life expectancy. Speaking to Parliament today as part of the Budget, Osborne (pictured) said details of how the “automatic review” system will work will be published in the summer. He said: “I’ve also said that we would consider proposals […]

iain-anderson.
32

Five years leading the FSA through crisis is enough for anyone

There really has been a lot of rubbish written about Hector Sants’ decision to step down as FSA chief executive. And some of the worst rubbish has been reported in the supposedly best informed places with pure ‘tittle tattle’ that he has been forced out by Westminster or Whitehall. I just do not buy this […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. I am absolutely elated that, the FSA are on to Cheshire Mortgages as, I believe their comeuppance is well over due. I lost (repossessed) my same house to this company in 2006, 2007 and 2008, managed to get my house back twice after great stressful negotiations but, they finally won. Had to move 8 times during this time. The company caused us great stress and took our only asset and our 27 year marriage ended partly due to the stress. The mortgage application was a farce. Now they have contacted me (first time since 2008) asking for money. Shocking!!!!

Leave a comment