The Lords EU committee wrote to Treasury Secretary Mark Hoban to outline a set of concerns that it has about the the draft directive on residential property, which it fears are not well suited to the British mortgage market due to this country’s distinctive nature.
During a consultation study the committee heard evidence from the Council of Mortgage Lenders (CML), consumer association Which?, and the European Mortgage Federation, asking them what they thought the impact of this new directive would be on the British mortgage market. Most respondents felt that the market in the UK was already reasonably well-regulated and urged those drafting the directive to give greater protection to EU mortgage markets that were in need of reform without adding to the regulatory burden of those that were not – such as Britain.
The committee asked Mr Hoban whether the European Commission’s current proposals allowed for such a balance and how much importance the directive placed on consumer protection. It called on the Government for its own update on the ongoing Mortgage Market Review by the Financial Services Authority (FSA) and said that the watchdog needs to be paying close attention to the European proposals in order to avoid duplication of the regulatory burden on Britain’s mortgage providers.