Following on from our report about the FSA’s plans to increase affordability checks as part of the implementation of the findings of it’s Mortgage Market Review, new calls are being made to revise these proposals.
Grant Shapps, the Conservative Housing Minister, asks for a more proportional and direct level of change in the way mortgages are regulated.
He is joined by the Chartered Institute of Housing and the National Housing Federation in saying that, too strict a regulation will have an adverse effect on the housing market.
With first-time buyers and shared-ownership purchasers being particularly vulnerable, the charity Shelter have actually welcomed more vigorous regulation as it means less chance for people in these groups falling victim in times of financial difficulty.
It was confirmed that the Communities and Local Government department are working with the FSA on the proposals.
Grant Shapps was responsible for repealing the ‘Home Information Pack’ (HIP) legislation in May 2010.