Robert Sinclair, director of the Association of Mortgage Intermediaries, said he understood the MMR paper due to be published in July would include a proposal to regulate short-term loans extending over one year terms.
Any short-term bridging deals lasting under a year will remain outside of regulation he said.
“The Treasury doesn’t want to regulate unless they have to,” said Sinclair. “The debate the Treasury will go back to will probably be that anything under 12 months stays outside regulation. That will be the UK position I think as we go back into Europe.”
And he added: “The FSA will produce a paper probably towards the end of July that will be in the same space. Anything under 12 months will be unregulated. Anything over 12 months will sit in a regulated space.”
