Innovation in the housing sector is being “stifled” due to the lack of certainty around financial regulation, the BSA head of mortgage policy Paul Broadhead has said.
Discussing the need for innovation in self-build funding at the BuildStore conference, Broadhead said lenders will not risk changing their criteria while the direction of the Mortgage Market Review (MMR) remains unclear.
He said: “We are in a different world from four years or five ago; the market has changed and it gives the opportunity for lenders to review their criteria and what their customer wants.
“However, lenders need to be certain of the regulatory environment before they review their criteria. Until regulation gives them the confidence to innovate, they won’t, especially as the FSA is looking to intervene in product design.”
Broadhead said: “There is an appetite to innovate, but it is being stifled by the FSA.”
