MMR proposals will be sensible, says AMI
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The final Mortgage Market Review proposals will be more sensible than the draft ones, predicts Robert Sinclair, director of the Association of Mortgage Intermediaries.
Speaking at the Pink Home Loans conference at Heythrop Park in Oxfordshire last week, Sinclair told delegates he expected the final MMR consultation paper would be issued in November and incorporate both lender and broker rules in one paper.
He told the audience: “This consultation paper will redefine interest-only. What I will say, without telling too many tales out of school, is I don’t think the rules on interest-only will be anywhere near some of the suggestions included in the other discussion papers.
“They will certainly be no worse than measures lenders have already taken in the interim.”
He also hinted the rules for affordability and income verification checks will be more pragmatic.
He added: “As an industry we have moved ourselves to a much better place regarding income verification without the FSA needing to drive us there, so I think what we have got today we will keep tomorrow.”
Sinclair says that he is feeling less worried about the MMR than a year ago because he believes the FSA has listened both to AMI and consumers.
But he remains concerned about what regulatory changes will come from Europe.
He insists it is the UK’s job to work out which politicians will be able to sway the rules in the UK’s favour and suggests this is likely to be Euro Liberal Democrat MP Sharon Bowles.
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