The BSA has welcomed the publication of the Professor Miles' report into the UK Mortgage Market, which advocates a sensible and balanced approach to encouraging consumers to take out long-term fixed-rate mortgages.
In particular the BSA welcome the recommendation to lower the minimum non-member funding limit for building societies.
Professor Miles recognises that the UK mortgage market is innovative and dynamic but concludes that problems exist in the information and advice that borrowers receive, in the structure of mortgage pricing and in the funding of fixed-rate mortgages.
BSA director general Adrian Coles says: “Professor Miles has carried out a thorough review of the UK mortgage market and on the whole found it to be dynamic and competitive. The recommendations he makes to improve the market are sensible and considered.
“Customers need information in order to assess the risk of what is still a long-term financial commitment. Greater transparency and allowing all customers access to the same mortgages, whether they are new or existing borrowers, will mean greater choice. Customers should be aware of the risks of interest rate rises and the effect these can have on the affordability of their mortgage. By providing more information they will be able to make informed decisions.