The Council of Mortgage Lenders is claiming next week's mortgage regulation announcements will lead to a regulations “bidding” war.
Economic secretary to the Treasury Melanie Johnson is set to announce the government will only regulate home loan advice, with the loans themselves to be covered by a voluntary standard.
The CML is concerned rivalries between the Treasury and the Department of Trade and Industry could spark off a “bidding war” to compete for who can implement the toughest regulation.
Council of Mortgage Lenders director-general Michael Coogan says: “I can't be positive if they maintain two systems in parallel. It will be bad for consumers and bad for the industry if there are two departments bidding up the level of regulation.”