Consultation outcome

Mortgage regulation

This consultation was published under the 2005 to 2010 Labour government

This consultation has concluded

Download the full outcome

Detail of outcome

Summary of responses to the consultation on mortgage regulation

Original consultation

This consultation ran from to

Summary

The Government intends to proceed with legislation to implement the proposal on second charge mortgages, subject to Parliamentary approval.

Documents

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.