You are here: Home - News -

UK lenders must face up to threat from Europe

  • 01/11/2000
  • 0
The mortgage industry in the UK needs to take direct action now if it is to prosper in the European ...

The mortgage industry in the UK needs to take direct action now if it is to prosper in the European Union, according to business lawyers, Eversheds, writes Ben Marquand.

Wilfred Aspinall, European advisor to Eversheds said that UK lenders are facing a growing threat from European legislation because they are not taking a proactive role in the planning process.

Lenders have not realised this legislation could have a negative effect on their business. Aspinall said that in the near future it is probable that that a single European Financial Services Authority will be set up to supervise cross border transactions, and mortgage lenders will then have to comply with rules imposed both by the UK FSA and the new European regulator.

Aspinall said: “Laws are being passed in Europe that will effect lenders here. Other European financial services industries have realised this however the UK is not having enough influence on those who decide the laws in Europe.”

One such example is the European White Paper on e-commerce in financial services, which will be launched in November. It will have a direct effect on how UK and European lenders operate online.

The paper will cover how lenders deal with everything relating to mortgages, from contents insurance to consumer redress.

However UK lenders are showing little enthusiasm to contribute their ideas to the development process.

This legislation will effect the way in which mortgage business is conducted and similar legislation is continually being introduced by the European Commission and subsequently implemented in the UK.

Michael Bolton, sales and marketing manager at Future Mortgages, believes that as an industry the UK has been too complacent.

“I think that in our market, we are guilty of completely disregarding Europe.

“We still do not see Europe as posing any interference with our specific market, but looking ahead I can see that it will,” he said.

Rod Murdison, proprietor of Murdison and Browning Mortgage Brokers, said: “IFAs and mortgage brokers have never had a body that everyone belongs to and which gets their views across to the decision makers. I think this is why we are vulnerable to adverse laws at both domestic and European level.”


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Todays Mortgage Administrator iVent programme: author Chris Croft discusses communication skills, @AldermoreBank's…
  • My week on Twitter 🎉: 104 Mentions, 47.7K Mention Reach, 66 Likes, 50 Retweets, 41.6K Retweet Reach. See yours with…
  • Our first day of the Mortgage Administrator iVent has been a great success – don’t forget to join us again tomorrow…
  • RT @DanielleDennis9: Our first ever virtual event is looking great! Make sure you log in today, take a look around the stands and watch the…
Read previous post:
HMC to rebrand and launch new product range

Household Mortgage Corporation (HMC) has revealed details of its rebranding exercise as it becomes i...