Protection for mortgage borrowers to be extended
The Treasury has announced that it aims to extend the remit of the
Financial Services Authority (FSA) to offer protection to borrowers
whose mortgages are sold on to third parties.
Under proposals outlined on November 25th, FSA regulation would
also broaden its scope to include buy-to-let and second-charge
mortgages.
Following the announcement, the Association of Mortgage
Intermediaries (AMI) voiced its support for the scheme,
particularly in relation to the buy-to-let sector.
Robert Sinclair, director of AMI, said: "It is right that the
proposals will exempt limited companies and focus on individuals
who carry out buy-to-let transactions. Broadly, this appears to be
codification of existing industry best practice."
Mr Sinclair added that this was unlikely to introduce any
significant additional costs to businesses.
The government's consultation document builds on the Reforming
financial markets plans released by the Treasury in July.
Consultation over the proposed legislation will close on February
15th 2010, with secondary legislation being used to implement any
final measures.
