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Regulator must step back to achieve fair outcomes – Star Letter 20/01/2017

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  • 20/01/2017
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Each week we round up some of the most thoughtful, intriguing and downright provocative comments on the Mortgage Solutions site to select our Star Letter.

This week’s Star Letter goes to ‘Stan Laurel’ for his comment under the story: Major banks shun PRA’s get-out clause for remortgaging landlords

“Even more mortgage prisoners are being caused. It seems that the regulators, FCA/PRA, manage to create a fresh wave of mortgage prisoners in the market at least once or twice a year.

“Of course they are only doing what is best for the customer.

“Do they really protect that many, whilst they financially hinder and often cripple millions?

“The self-employed, complex income earners, multiple income earners, interest-only clients, older clients, landlords… Every one of these sectors is massive. How many families in the UK have been left unaffected and are not paying hundreds of pounds a month extra due to this protection? Hundreds of thousands are stuck on standard variable rates.

“Others are only offered punitive rates compared to the ultra-low rates otherwise available. How many have been forced out of the market back to rented? How many cannot enter the market and are stuck renting or with family?

“So perhaps the few vanilla clients left are the ones who have gained from this ‘protection’? No, not really, they are simply the ones who are still allowed a mortgage as before.

“Even this sector will have been poorly affected as the overall market has been strangled and is not breathing easily. Buying and selling has been severely restricted, with many homeowners resigned to staying in the current property even when they actually need a larger or smaller home or wish to change area.

“How long do we have to accept the regulators shield from market gluttony or the tiny amounts of mortgage fraud that existed previously? How long before they take a step back, stop the damage and allow fairer conditions to return?

“Few can appreciate the true cost of over-zealous regulation, but it is massive, so I look forward to the day the regulator begins to really balance fair outcomes with a fair price financially and socially.”

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