The Government recognises that there are those who face problem debt. The Money Advice Service (MAS) is responsible for the coordination of publically funded free to client debt advice and is financed by a levy on the financial services industry.
Mortgage lending is regulated by the Financial Conduct Authority (FCA). The regulation of mortgage lending is based on the principle that mortgages should only be advanced where there is a reasonable expectation that borrowers can repay. All lenders must conduct a thorough affordability assessment in order to ensure any lending is responsible.
Graduates only have to start repaying their student loans when their earnings are above the repayment threshold of £21,000. Any outstanding debts are written off 30 years after graduation.