Robert Sinclair, director of AMI, said: “There are a number of sensible proposals within this next consultation stage of the Mortgage Market Review and we are glad that FSA has listened to AMI and taken on-board a number of our recommendations.”
One of the proposals of the consultation paper was to remove non-advised sales and make mortgage sales either advised or execution-only.
Sinclair said: “Making mortgage advice a requirement for all interactive sales unless the customer rejects the offer of advice will provide significant benefits for consumers.
“Buying a house is a substantial financial undertaking, and we have long argued that providing consumers with expert advice is a process that cannot be left to chance.
“The MMR’s proposals will ensure many more consumers are given the support and guidance they need to make better and more informed decisions.”
One of the core proposals of the consultation paper was to make income verification mandatory on all mortgage applications.
Sinclair said: “The need to evidence income and assess committed and essential expenditure will deliver sustainable loans, together with new protections for those who are credit impaired.
“We are also pleased that the regulator has recognised the importance of providing a level playing field for lenders and intermediaries on the issue of qualifications and determining product suitability.”
Sinclair added that it was important that consumers were confident that all stages they were receiving advice from qualified staff acting in their best interests.
He said: “The only area we consider needs further work is on the transitional arrangements, where the work to assist mortgage and property prisoners might benefit from further development.
“We need to ensure that people do not get trapped on escalating variable rates, unable to access the protection afforded by fixed rate alternatives that might be cheaper in the longer term.”
