What’s happening?
In March 2013, UK chancellor of the exchequer George Osborne introduced a 'Help to Buy' scheme for first-time homebuyers, with the government offering to guarantee the first 20% of a new mortgage. In April 2013, the former Financial Services Authority (FSA) was split into the Prudential Regulatory Authority (PRA) – which became part of the Bank of England – and the Financial Conduct Authority (FCA). One of the FCA’s first acts was to urge banks to address potential asset quality problems stemming from interest-only mortgages, as borrowers might not be able to afford repayments if interest rates begin to rise from current historic lows.
