The government intends to transfer the regulation of second charge mortgage lending to the FSA from the Office of Fair Trading, including the regulation of existing second charge loans.
The government made the announcement as part of the Budget, saying the move will create a single regulator for residential mortgage lending, ensuring consistent standards of consumer protection across all mortgages and simplifying the regulatory environment for lenders.
There was no time frame given.
The government said it was continuing to explore how best to protect consumers in the buy&’8208to&’8208let market and those whose mortgages are sold on to unregulated firms.