FSA Mortgage Market Review Consultation Paper CP11/31 link

Mortgage Market Review

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Mortgage Market Review Update December 2011

The FSA has today issued their latest consultation paper on the mortgage market review.

The mortgage market review is the FSA’s attempt to improve the process for provision of mortgages in the marketplace and has been taking place over the past few years. The latest consultation paper CP11/31 can be accessed here.

This is intended to be the final consultation paper before the issue of legislation and implementation of the proposals in 2013.

The FSA is seeking further feedback from interested stakeholders and we have already made our thoughts known to them on previous occasions (see annex 5 of CP11/31). As a document comprising close to 600 pages there is a lot to take in but we will be reviewing the current proposals this month for the benefit of our clients.

On first glance, some of the key proposals would appear to be:

No sales without advice (with an option to option out of advice for high net worth or Professional clients)

Lenders to check income and assess affordability on all cases

No interest only mortgages without a credible repayment strategy

More flexibility in the way the mortgage adviser chooses to disclose the scope of their service and provide information

No doubt there will be more twists and turns in this saga during 2012 and we will be providing further feedback to the FSA before the end of the year.

More soon…

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