Response - FSA Mortgage Market Review - Responsible Lending

By: Nicola Hughes  Published: November 2010


Irresponsible lending can have devastating consequences, for individuals living on the margins of affordability and for the wider housing market. The mortgage lending market has undoubtedly contracted since the credit crunch, but Shelter believes that it is imperative to introduce robust regulation to finally put a stop to reckless lending decisions. We do not think that our housing crisis can be solved by pumping credit into the market at a time when housing supply is so low and constrained compared to demand.

Summary

Shelter welcomes the FSA's new proposals on mortgage lending and the evidence based, thorough approach it has taken in formulating them. More effective and interventionist regulation of mortgage lending can make a vital contribution to stabilising the over inflated and volatile housing market, embedding responsibility and sustainability into home ownership, and reducing indebtedness.

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