The Treasury and the Financial Services Authority have today issued the official response to the European Commissions Green Paper on mortgage credit in the EU, which reveals the UK is “sceptical” about Commission intervention in mortgage regulation.
In the response, the two government bodies say: “The UK’s recent experience of introducing regulation indicates the cost of intervention can vary greatly depending on the measure concerned.
“For example, significant costs arise from intervening on consumer information and advice. At the same time, the evidence suggests consumers’ information and advice needs are closely linked to the legal and cultural landscape of their specific national markets.
“The UK is therefore sceptical that Commission intervention in this area will prove effective in cost benefit terms, especially given the lack of evidence that action on this front will deliver greater integration.”