Labour MP George Mudie has hit out at what he describes as the Financial Services Authority’s reign of fear on mortgages.
Hearing evidence at a Treasury Select Committee meeting today on financial regulation, Mudie questioned Mark Hoban, financial secretary to the Treasury about whether the FSA or the newly created regulatory body should be independent from the government.
Mudie says: “The full horror of the Financial Services Authority’s reign of fear on mortgages has not yet percolated and people do not understand why mortgages are so scarce.
“It is very difficult to get a mortgage without a very big deposit if you are a first-time buyer and if you are self-employed, the phrase seems to be hard luck.”
He asked whether at a time when the construction industry is reliant on the mortgage industry whether it is wise to have a regulator that is not more answerable to parliament.
Mudie adds: “The last word seems to be with the regulator, is there nobody in the Treasury or the government that is uncomfortable about that?”
Hoban says the regulator does respect the opinions of parliament and the Treasury Select Committee, but says there is a risk that its independence and authority could be undermined if they are being politicised.