The EU directive on harmonised mortgage regulation in member states could force the regulation of second charge mortgages, predicts Chris Cummings, director general of the Association of Mortgage Intermediaries.
Speaking at a seminar at Financial Services Scotland in Glasgow, Andrew Turrell, manager in the mortgage and credit unions department of the Financial Services Authority refused to speculate as to whether second-charge mortgages would one day come under FSA regulation.
He says: “It is in the hands of the Treasury.”
But Cummings says: “When you look at what is contained in the EU directive the distinction between first and second charge mortgages disappears, so it’s really a case of when rather than if.”
He adds: “It will be interesting to see which government department takes it on.”