Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 20 January 2022 to Question 103605 on Financial Services Authority, on what specific information and reports the decision not take forward the legislation referred to in that Question was based.

The Government decided that it would not take forward legislation but would keep the position of contracts sold to unregulated firms under review and return to legislation if there was sufficient evidence of consumer detriment. This decision was reached based on careful consideration of the market conditions at the time, analysis of the available evidence of consumer harm and engagement with a range of stakeholders, including the Financial Services Authority (FSA) and Financial Ombudsman Service (FOS).

The Government continues to keep the position of mortgage contracts sold to unregulated firms under review. All mortgages, regardless of the regulatory status of the owner, must be administered by a regulated administrator.

It is worth reiterating that further regulation of this kind would not necessarily enable borrowers to switch to a cheaper mortgage deal or lower the interest rates they pay.