The Government has continued to apply pressure on the FSA to ensure the Mortgage Market Review is “proportionate” and “avoids unnecessary prescription on the mortgage industry”.
In a written response to an MP’s question, housing minister Grant Shapps confirmed the Government’s commitment to supporting homeownership.
He said: “The new Government are committed to supporting aspiration to homeownership and shares the underlying objective of the Mortgage Market Review to create a stable, sustainable market for all participants. We must avoid the boom and bust that the property market has experienced in the last decade.
“We want to see a regulatory framework that supports access to homeownership and new housing supply while preventing repossessions.
“The Government believe the Financial Service Authority’s changes must be proportionate and avoid unnecessary prescription on the mortgage industry.”
Shapps also said he has worked closely with both the regulator and the Council of Mortgage Lenders on the MMR proposals.
The response follows a statement Shapps made at the National House-building Council’s annual lunch last month, where he branded the MMR a “step too far”.