Peter Williams, executive chairman of the Intermediary Mortgage Lenders Association, said the mortgage market is not perfect but the proposalsd will present obstacles to consumers like barriers to entry and greater cost.
“The question we have to ask is whether the FSA has gone too far, or at least not done enough to understand the impact of its proposals before airing them? Moreover, it has done nothing to address the big question today regarding the lack of mortgage finance,” said Williams.
He added the market it plans to bequeath to us seems some considerable distance from meeting the requirements of an ‘age of aspiration’, as set out recently by the Housing Minister Grant Shapps.
“The FSA has asked for comments over the next few months and I expect considerable pushback from the industry. Later this year we have a further paper on distribution and advice and then an EU paper on responsible lending. By 2012 the UK mortgage market could be unrecognisable and with unknown consequences. This really is a step into the abyss.”
The consultation period ends for CP10/16 on 16 November.
To see the consultation paper in full, click here
