The world has moved on since the FSA started its mortgage market review and the proposals may not meet the needs of today’s market, according to Imla executive director Peter Williams.
He said: “Do the FSA have a view of what landscape they are going to produce? And how does that landscape fit with the practical needs of the UK. It is the question of how those two fit together that is in our minds here. The MMR was framed in the context of a high level of lending but the MMR will arrive in the context of a low level of lending. I think the context and the world has changed since it was born.”
Home Funding chief executive Tony Ward said the MMR goes too far and does not address the market’s problems. He said: “At a high level, there is no disagreeing that the FSA’s aspirations are entirely reasonable and sensible but when we get to the detail we think it has gone too far and does not address the problem.”
When asked if lenders had started implementing some of the proposals in the MMR prematurely, GE Money Home Lending sales and marketing director David Harvey (pictured) said: “Some of the main things the industry has done in advance of the MMR is around interest-only, affordability and arrears.
“We have taken the attitude that this is just responsible lending and I think these would have happened anyway.”