consultation on the new rules ends this month Mortgage lenders have been the UK financial regulator to water down its plans to restrict mortgages.Council of mortgage lenders (CML) says that the Financial Services Authority (FSA) plans are "imperfect and impractical."
But the FSA said he was simply trying to hunt irresponsible lending.
Told borrowers should be protected to mortgages, they do not have the means, that the presentations to be recovery of possession.
"Unintended negative results.The line between the two organizations has been brewing since the fall of 2009, when the FSA originally proposed self-certified loans should be prohibited.
Since July of this year, the FSA has consulted on a wide range of plans, that the CMA is concerned will be seriously and unnecessarily, hinder any resumption of mortgage loans in the future.
The Director General Michael Coogan CMA said that he wanted the FSA to rewrite his draft rules.
Research commissioned by the CMA has shown "a broad range of evidence suggesting that there is a range of negative, unexpected implementation of policy outcomes and proposed rules currently drafted the FSA", he said.
The FSA has responded by accusing the mortgage industry in the past to be guilty of "major failures" including "risky loans" that had led to "unaffordable loans", especially in the years prior to the start of the 2007 credit crisis.
"No money left"Among the FSA plans are that lenders should be to:
Continue to read the main storyit is imperative that ensure that lenders act in a responsible manner and do not return to irresponsible practices "end quote Financial Services Authority check the income of all borrowersassess applicant's revenue and expenditure assess their ability to repay on a full basis capital - interest and assume loans are no more that 25 years limit size loans to people with problems of past payment and assumes that interest rates may increase their initial level CMA recently complained that these measures would have slashed past mortgages to many sound borrowers and lead to lower prices if implemented House in the future."
But the FSA said that many borrowers was only preserved flow ultra low interest rates.
He stressed that 350 000 borrowers are currently late and 54,000 houses were taken last year.
Although it was much better position than many commentators had planned, the FSA argued that things may take a turn for the worse.
"Almost half UK (46%) households had little or no money left after their mortgage and other bills were deducted from their income," says the FSA.
"Even a modest increase in interest rates could lead to a significant increase in the number of families with financial difficulties."
"This is why it is imperative that we provide to act responsibly and not refer to irresponsible, practices to protect consumers and take on mortgages that they cannot afford to lose their homes, lenders" added the FSA.
UncertainThe CMA submitted that the Government seemed to know if yes or no he wanted to protect a vulnerable minority of borrowers or to help many others to achieve their goal of accession to the property.
It is said that the two could be achieved by a more free mortgage market and a safety net for distressed borrowers.
But the FSA replied that his plans amounted simply to tell the industry she should apply "sensible subscription" in the granting of loans, so that several lenders currently applied anyway during the current episode of mortgage rationing.
