Mortgage experts have warned that the new regulatory structure under the Bank of England will be far more draconian and consumer-driven.
Association of Mortgage Intermediaries director Robert Sinclair called on the industry to lobby the Government in a bid to ensure the new regulatory structure does not absolve consumers of their responsibilities.
The Consumer Protection and Markets Authority will take on the FSA’s responsibilities for the Financial Ombudsman Service and the Financial Services Compensation Scheme and oversee the newly created Consumer Financial Education Body.
Sinclair said: “This new structure will be harsher, more draconian, more focused on the consumer, unless we as an industry work very hard to re-educate the politicians to come up with something that is more balanced around making the consumer responsible for some of their actions.”
PMS executive chairman John Malone said: “If you get guys like Vince Cable around that table – he is completely and utterly opposed to the kind of lending that took place right the way from the mid 1990s through to about 2007. If he has got any influence, I think we will have a much more draconian mortgage market to what we have experienced in the past.”