Mis-sold Mortgage Claims > Mortgage News
Mortgage regulation intervention from Europe remains an issue
Thu, 31 Mar 2011
The European Commission (EC) has published its proposal for a Directive on mortgage lending . The draft Directive ‘credit agreements relating to residential property’ sets out proposals aimed at creating an efficient and competitive single market. There remains a great deal of resentment within the lending sector about the EC intervention in UK lending policies, with criticism from main trade bodies.

The Building Societies Association (BSA) has said it does not believe that the case for EU intervention has been convincingly made and points out that, "a single rulebook for mortgage lending is inappropriate given the diverse markets, cultures and regulatory frameworks in place across the EU."

Paul Broadhead, Head of Mortgage Policy at the BSA commented. "The requirement for a European Standardised Information Sheet, with prescribed content and layout could burden the industry with costs running into tens of millions of pounds. This is unlikely to deliver any benefit to UK consumers as they will receive less information than they currently receive through the KFI.

"Now that the draft Directive is published it is vital that the FSA pays close attention to its effect on the mortgage market review (MMR). The summer consultation will need to incorporate the European dimension if it is to include a full and robust impact assessment."

The Council of Mortgage Lenders (CML) has also expressed its concerns, Michael Coogan, director-general commented that the CML would "need to scrutinise the Directive thoroughly before drawing any conclusions."
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