27 Nov

Treasury proposals 'will help' borrowers

Treasury proposals 'will help' borrowers

Proposals outlined by the Treasury earlier this week designed to offer greater protection to borrowers have been welcomed by the Association of Mortgage Intermediaries (AMI).

Commenting on the proposals, Robert Sinclair, director at the AMI, said that the latest plans would "bring things into line", allowing consumers to compare mortgage products and rates more easily.

He explained: "This will help people understand about what the different kinds of borrowing are. Because the documentation would then be similar, it will become clear what the charges are to their property."

All the latest proposals build on the reforming financial markets paper, which was released earlier this year and set out the government's analysis of the financial crisis and its causes.

Under these plans, the Financial Services Authority would be made responsible for the regulation of the second-charge and buy-to-let mortgage markets.

The Council of Mortgage Lenders has also voiced its support for the extension of FSA powers relating to second-charge mortgages but remains unsure about how the regulation will benefit the buy-to-let sector.

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