Today the Financial Conduct Authority set out the finalised changes to its responsible mortgage lending rules.
Paul Broadhead, BSA Head of Mortgages and Housing comments:
“The BSA welcomes FCA’s updated responsible lending rules. BSA members actively participated in the implementation group, and we thank the FCA for their collaborative approach to this consultation.
“For customers who are currently on reversion rates with inactive or unregulated mortgage owners and have demonstrated a good payment history, the new rules could give them the opportunity to remortgage to a new lender.
“However the BSA, and now the FCA, recognise that those borrowers with unregulated lenders have fewer safeguards, and we would support the call for an extension to the regulatory perimeter.
“Now that the final shape of the rules has been established, lenders can begin to analyse how they fit with their respective lending policies.
“We will continue to work with our members and the FCA to support these changes, but it is important to recognise that this intervention will only help a proportion of the customers identified by the FCA in the Mortgage Market Study.”