2 Dec

Better mortgage future pledged

Better mortgage future pledged

A senior member of the Financial Services Authority (FSA) has said that the future of the mortgage industry will be a better one if the right changes are made.

Speaking today at the Council of Mortgage Lenders' (CML) annual conference, FSA retail markets managing director Jon Pain said the mortgage system of the future will be "unlikely" to resemble that which existed until recently.

He added that "big issues" will need to be addressed but said he believed the CML is "willing" to help the FSA achieve the right kind of change.

This will involve a shift to a system "where lenders have adequate liquidity, funding and capital; there are strong systems; and customers enjoy the benefits of a vibrant market but are not exposed to unnecessary risk", Mr Pain concluded.

Successfully encouraging banks to lend again is a vital pre-requisite to economic recovery and without it the recession will be more severe than otherwise, Bank of England governor Mervyn King told the Treasury select committee at Westminster last week.

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