The CML says that the market conditions have changed so much since the publication of the European Union White Paper on mortgages last December that there is no sense in carrying on with its contents.
Instead the trade body is suggesting the EC focus on supporting financial stability as new proposals can only be developed when the market has returned to a stable state.
Andrew Heywood, deputy head of policy at the CML, says: “Many European mortgage markets have changed so dramatically in recent months that the only sensible step at this stage is to drop the proposals and start again from a basis of analysing likely future market conditions.
“Proposals to further the integration of markets are unlikely to produce net benefits in the present climate. We believe that the EC recognises this and will not bring forward proposals in the immediate future. It has also launched a broad programme of work on financial stability, which is a sensible and timely development.”