CML responds to FSA mortgage lending proposals

08 September 2009

Written by Gavin Elley

It is "inappropriate" that the Financial Services Authority (FSA) should implement separate mortgage lending measures for building societies at the same time as conducting a comprehensive review of the overall market.

That is the view of the Council of Mortgage Lenders (CML) spokesperson Bernard Clarke, who thinks the regulations specifically aimed at building societies are not necessary.

FSA proposals may restrict the lending of buy to let and high loan-to-value mortgages for borrowers who have small deposits.

Mr Clarke said: "What we want to see is the completion of a mortgage market review. That should shape what would be needed in terms of the future regulation of lenders."

Consumer choice could be narrowed as a result of such measures, the CML representative continued.

Earlier this month, the Building Societies Association also reacted negatively to the FSA plans, saying they could restrict building societies' ability to compete with banks.

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