26 Jan

More protection for people buying houses for sale in the UK

More protection for people buying houses for sale in the UK

People looking for houses for sale in the UK will be more protected when trying to secure a mortgage deal.

A package of measures to improve customer protection in the mortgage market was announced by the Treasury today.

Regulation of second charge residential mortgages will be transferred from the Office of Fair Trading (OFT) to the Financial Services Authority (FSA).

The move aims to create more consistent standards for consumers and simplify regulations for both lenders and people taking out mortgages.

In addition, regulation of the sale and rent back market will be extended to all providers to ensure protection for consumers.

Mark Hoban, financial secretary to the Treasury, said: "The government believes that this package of measures will enhance protection for consumers in the mortgage market."

The FSA is to begin work immediately to implement the new measures, ahead of the publication of statutory requirements later this year.

Trade association the Council for Mortgage Lenders (CML) welcomed the decision, but argued that extra regulation and the transfer of power to the FSA adds to the "onerous burden" of implementing mortgage regulation.ADNFCR-1222-ID-800366156-ADNFCR

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