Commenting on the Treasury consultation paper on extending the scope of FSA regulation, Paul Broadhead, head of mortgage policy at the BSA, said: "We support the regulation of second charge lending by the FSA to ensure that all customers are treated consistently. The challenge for the FSA and the OFT will be to ensure a smooth transition period for both customers and lenders.
"We welcome the proposal for greater protection for consumers when mortgages are sold on. A more robust approach to ensuring that buyers of mortgages continue to treat borrowers fairly is to be welcomed.
"If the FSA wishes to regulate mortgages for small landlords as set out in the Mortgage Market Review discussion paper, it will face a difficult challenge in differentiating between mortgages for different types of buy to let investors.”
