BSA comments on the Government package of measures to enhance consumer protection in the mortgage market

BSA comments on the Government package of measures to enhance consumer protection in the mortgage market

BSA comments on the Government package of measures to enhance consumer protection in the mortgage market

In principle the measures announced by the Government today are sensible. Any tightening of the underwriting criteria of first charge mortgages, through rules imposed by the FSA, has the potential to drive customers to other forms of credit, such as second charge mortgages.

These loans are often more expensive and are subject to a different regulatory structure.
Bringing second charges mortgages under the FSA remit will help ensure that there is consistency in regulation and could make it simpler for consumers.

The BSA is also supportive of the proposed regulation of firms that purchase mortgage books and the expansion of sale and rent back criteria, to prevent consumer detriment in this market.
However, the HM Treasury announcement today adds to the weight of regulatory proposals the FSA needs to consider.

As we have consistently stated, it remains vital that the FSA assess in detail the cumulative impact of all the proposals to prior to pressing ahead with implementation, particularly to ensure that the revised regulations facilitate the desired outcomes for UK consumers

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Notes to Editors

1. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 49 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 21% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.

2. Photographs of Paul Broadhead are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk

3. Contact – Paul Broadhead, paul.broadhead@bsa.org.uk / 020 7520 5917

Katie Wise (nee Errington)
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway
London
WC2B 6UJ

Tel: 020 7520 5904
Fax: 020 7240 5290
Email: katie.wise@bsa.org.uk
Web: www.bsa.org.uk