FSA reforms 'would have meant 4m fewer mortgages'

clock

More than half of mortgage loans made between 2005 and 2009 would not have been granted if FSA proposals on responsible lending had already been in place, according to the Council of Mortgage Lenders (CML).

As part of its response to the regulator's Mortgage Market Review (MMR) consultation paper, the CML assessed what impact the proposals would have had if applied five years ago. It suggests some 51%, or 3.8 million, "good loans" - those that have never suffered payment problems - would potentially not have been made, while an estimated 151,000 arrears and 38,000 repossession cases might not have occurred. The FSA is proposing major reforms to end excessive loans and crack down on interest-only mortgages. It also wants to impose more rigorous financial checks on applicants. The CML s...

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

Join

 

Already a Professional Adviser member?

Login

More on Trade Bodies

PFS pushes for rethink of FCA's £71.2m British Steel compensation scheme

PFS pushes for rethink of FCA's £71.2m British Steel compensation scheme

Challenging lump-sum approach

Ayesha Venkataraman
clock 28 June 2022 • 3 min read

'FCA's failure to supervise leading to FSCS levy hikes' - PIMFA

Regulator slammed

clock 02 March 2020 • 2 min read

Fay Goddard to retire as PFS chief

Personal Finance Society (PFS) chief executive Fay Goddard is to retire next year after five years in the job.

clock 08 November 2012 • 1 min read