BSA calls for a government debate on the future of the mortgage market

Consumers currently looking for cheap mortgage rates will be interested to hear that the Building Societies Association BSA has called for a government debate on the future shape of the mortgage market.

The call comes after the Financial Services Authority FSA published its Responsible Lending Consultation outlining proposals for the future of the industry.

Experts at the BSA argue that it is not the role of the FSA to bring forward rule changes that would have a profound impact on the housing market, social mobility and aspirant homeowners.

Paul Broadhead, BSA head of mortgage policy, believes the proposals set out by the FSA would have far reaching consequences for the whole of the UK economy.

He added: "It is for the government to provide a clear plan of their housing policy objectives. It will then be imperative to assess whether regulatory proposals facilitate the desired outcomes for UK consumers or present further obstruction."

Recent BSA figures revealed that gross mortgage lending by mutuals was £2.2 billion in September, which is ten per cent greater than the £2.0 billion lent in August.
 

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2010-11-17 14:42:32 © Moneyextra.com