The FSA is considering major reforms of the mortgage market, including the option of regulating loan to value (LTV) ratios.
The Turner Review, which was published today, had been predicted to include definite plans to curb high LTV lending. However, the regulator has put off any definitive decisions until Q3 at the earliest. The report stated: "The FSA's paper on regulating the mortgage market will assess the strength of the arguments for and against [the regulation of products]. It will analyse the extent to which customer defaults and bank losses are correlated to either high initial LTV or loan-to-income (LTI), and will draw lessons from international experience. "It will also assess the merits of direct ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes