The regulator has revealed it has been in negotiations with the Council of Mortgage Lenders (CML) and is awaiting the outcome of stakeholder meetings between the trade body and its members before moving forward on the issue.
Confirming the plans, a spokesperson for the FSA, said: “We have been talking to the industry about the issue of footprints and are aware of the concerns involved. We await the outcome of the CML’s meetings and depending what this outcome is, we will take the action necessary to address the footprint issue.”
However, while the CML has confirmed it is discussing the issue with its members, it denied there were any formal meetings taking place.
Sue Anderson, head of external affairs at the CML, said: “It is true we are in discussions with our stakeholders about this issue, but it is more of an ongoing debate. The only reason why it is back on the agenda is because of the growing number of cases where members have begun to use affordability based calculations rather then income multiples for lending.”
Anderson added that the issue of footprints laid at the regulator’s door. She said: “The ball is in the FSA’s court. It needs to decide if its existing stance needs reviewing.”
The issues surrounding ‘soft’ and ‘hard’ footprints in the industry has been a bone of contention for some time, with many intermediaries calling for an overhaul of the methods used by lenders.
Phil Perry, director at Ark Financial Planning, welcomed the move. He said: “This is certainly an issue that urgently needs addressing in the market. If a client shops around, they should not be penalised for this. ‘Hard’ footprints should only appear on a credit check at the acceptance stage.”
