unregulated mortgage

flyaway

The FSA says that National Home Loans are unregulated but Paragon is regulated. As Paragon are now administrating National Home Loans, does it mean they are now regulated?

Can anybody clarify please?

magpiecottage

National HomeLoans Corporation, if that is who you mean, was one of a number of mortgage lenders that sprung up in the late 1980s. They offered mortgages using funds raised on the wholesale money markets. At the time, this was cheaper than retail money (deposit accounts) that traditional lenders relied on and gave them a competitive edge.

They mostly fell by the wayside in the 1990s - if I remember correctly, National HomeLoans stopped lending in the spring of 1990 leaving a number of applicants with mortgage offers that would not be honoured.

However, it could not simply foreclose on loans already in force so there may be outstanding accounts that have not yet run their term.

NHLC was not a bank or building society - so it did not subscribe to any Ombudsman Scheme and whilst all mortgage lenders are now required to submit to FSA/FOS jurisdiction, I do not think there is anything the FSA could realistically do to force NHL to do so. If it did, the only option for NHL would be immediate foreclosure on all loans which is clearly not in the interest of its customers.

However, since NHLC has outsourced its administration to a firm that is authorised, you can make complaints against that firm. However the administrator will not be responsible for the decisions of NHLC.