19 Jan

CML welcomes MPs backing in mortgage market debate

CML welcomes MPs backing in mortgage market debate

The Council for Mortgage Lenders is welcoming the backing of MPs in the House of Commons in the debate surrounding the mortgage market review.

Conducted by the Financial Services Authority (FSA), the review puts forward a raft of measures including income verification for all mortgages, putting lenders in charge of affordability assessments and banning home loans to customers with combinations of "risky characteristics".

However, Conservative MP Robert Syms told the House of Commons that some of the FSA proposals would have a negative impact on the mortgage market.

Mr Syms said: "[The proposals] take the very patronising view that customers need protecting from themselves – a view that could be insulting to many mortgage borrowers."

"There are ... fundamental concerns about many proposals transferring responsibility away from the consumer and to the lender."

Mr Syms called for the Financial Services Authority to promote competition and innovation in the mortgage market to meet customer needs.

Labour MP John Woodcock and Conservative MP Marcus Jones supported Mr Syms in the debate.

Mr Woodcock said proposals would penalise smaller lenders, while Mr Jones argued that larger loan-to-value ratios for first-time buyers should not be excluded from the market.ADNFCR-1222-ID-800351816-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.