13 Jul

People buying houses for sale 'are concerned about access to finance'

People buying houses for sale 'are concerned about access to finance'

Homebuyers hoping to purchase their dream house for sale are more concerned about funding their mortgage than about "risk lending", an expert has said.

Council of Mortgage Lenders' (CML) director general Michael Coogan was speaking after the Financial Services Authority (FSA) released its paper on responsible lending.

The FSA proposed that restrictions over mortgage lending should become stricter, removing "self-cert" mortgages, which allow homebuyers to verify their own finances.

However, Mr Coogan said: "There will always be a regulatory trade-off between protecting consumers from over-borrowing and increasing the barriers to home-ownership."

He added that "consumers will feel the costs of imposing new regulatory requirements".

A "pragmatic approach to implementation" was something the mortgage expert hopes the FSA could adopt to "reduce the negative side-effects that may arise from well-intentioned regulation".

The restrictions may be getting tighter but the number of mortgage products available has risen over the last few months, according to recent figures from Mortgage Britain.

It also showed that there were now over 6,000 loan schemes for homebuyers in the UK.ADNFCR-1222-ID-19887414-ADNFCR

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