Mortgage regulation
Download the full outcome
Detail of outcome
Summary of responses to the consultation on mortgage regulation
Original consultation
Consultation description
The Government has decided to:
- transfer responsibility for the regulation of second charge residential mortgages, including existing loans, from the Office of Fair Trading to the Financial Services Authority (FSA);
- consider changes to the form of regulation proposed to protect consumers in the buy-to-let sector; and
- take action to protect borrowers when mortgage books are sold on, after further work to explore the effect on mortgage securitisation markets.
The Government intends to proceed with legislation to implement the proposal on second charge mortgages, subject to Parliamentary approval. The commencement date of legislation will be suitably aligned with changes to the regulation of first charge mortgages arising from the FSA’s “Mortgage Market Review”. The Government will also publish revised proposals on the other two measures later this year.
The Government launched the initial consultation on 25 November 2009. It set out proposals to:
- extend the scope of FSA regulation to include second-charge mortgages;
- extend the scope of FSA regulation to include buy-to-let mortgages; and
- protect borrowers when lenders sell on mortgage books to third parties.
The consultation closed on 15 February 2010. All responses were carefully considered before next steps were determined. The Government is very grateful for respondents’ contributions.
Useful links
- Reforming financial markets paper
- Financial Services Bill
- Financial Services Authority’s discussion paper
