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CML code could be lost as N3 nears

The Council of Mortgage Lenders fears it does not have enough time to rewrite the mortgage code before N3 and admits there is a possibility that it may have to be scrapped.

The CML says it is highly debatable whether it can revamp the code in the time between publication of the FSA&#39s final mortgage rules – due at the end of the month – and August, when lenders become directly authorised.

It claims there is even a chance that the code will cease to exist at N3 but says it is unsure what would take its place.

The original version of the mortgage code was written by the CML in 1997 and is understood to have taken almost a year to complete.

If the FSA&#39s final rules are published on time, the CML will have less than eight months to consult, respond and then draft the new code.

A CML spokeswoman says: “It is highly debatable whether there will be enough time for the code to be rewritten as we cannot start on it until the final rules come out. It is not a 100 per cent certainty that there will even be a code.”

Mortgageforce managing director Rob Clifford says: “It is wholly improbable that the code can be overhauled in time but I have complete confidence it will survive beyond N3.”

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