FSA proposes mortgage market reform
Potential reforms to the UK mortgage market have been laid out by the Financial Services Authority (FSA).
The organisation has made the proposals with the aim of protecting both borrowers and lenders, affordability tests for all mortgages being among the measures put forward.
Extension of the FSA's remit to cover those purchasing property for buy-to-let purposes, as well as all other lending, is also included.
Commenting on the suggestions, National Landlords Association chairman David Salusbury noted that it represents a "logical approach", but added that focus should be placed on ensuring lenders are providing finance.
"The majority of landlords are financially sound and approach their lettings business in a professional and business-like way," he said, adding that this point should be "at the heart" of discussions about regulation.
Managing director of supervision at the FSA Jon Pain stated that the proposed reforms are designed to ensure the mortgage market remains sustainable in the future.
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