The MCCB claimed that the move towards statutory regulation of mortgage advice has been facilitated by its own work in setting up a register of intermediaries and lender firms in the mortgage market, and its attempts to enhance standards through the introduction of compulsory training and professional qualifications.
The MCCB stated that it will work closely with the FSA to ensure a smooth transition to the new regime.
Luke March, chief executive of the MCCB, said: "Our work in developing the Code and our registration rules to provide robust consumer protection and a complementary mix of non-statutory and statutory mortgage regulation has facilitated the move towards a single regulatory structure for mortgages. We will wholeheartedly play our part in making the transition period as smooth as possible, and will work closely with the FSA and Treasury in ensuring the statutory regime delivers the right balance of consumer protection and regulation."
The move has also been praised by the Consumers Association as being a huge leap forward for consumer protection.
Shelia McKechnie, director of the Consumers Association, said: "A mortgage is probably a person’s biggest and most complex financial transaction and if it goes wrong it could cost thousands of pounds in extra interest or excessive penalties. We strongly believe this decision will help to protect consumers from bad practice and give them access to competent and unbiased mortgage advice."
