With the government set to publish its White Paper on market integration in the Summer, following a report from the Mortgage Finding Expert Group (MFEG), the European Commission has called on lenders to create a passport system, which would allow them to undertake business in states without unnecessary restrictions.
The report also called for greater transparency in national land registries.
The report stated: ‘MFEG believes that a market-based, de-regulated approach is best able to provide efficient markets, deliver maximum choice and best pricing for the consumer’ – a premise the CML agreed with.
Commenting on the passport system, Alex Hammond, PR manager at Kensington Mortgages, said: “Part of setting up a business in other countries is to look at the market, see if there are opportunities there and look at whether your business model will fit.
“Although a passport system is welcomed and will free up business for lenders who want to be active in other countries, the most important factor to be successful is to have local knowledge of those markets. You can do your homework, but it will not replace setting up with a team that has good experience of your chosen market.”
