Question to the HM Treasury:

To ask Her Majesty’s Government what assessment they have made of the regulation of the mortgage market and the effects of that regulation on the ability of people to obtain mortgages in a timely and efficient manner.

The government is committed to increasing competition in banking and creating an environment in which firms compete to offer a range of products that suit the varying needs of their customers.

The Government has not undertaken a formal assessment of the regulation of the mortgage market and the effects of that regulation on the ability of people to obtain mortgages in a timely and efficient manner.

Although the Treasury sets the legal framework for the regulation of financial services, specific rules are a matter for the FCA whose day-to-day operations are independent from government control and influence.

In May 2016 the FCA published a review which assessed the impact of recent changes to the regulation of mortgage lending. Where lending is affordable, the FCA did not see evidence that the responsible lending rules have prevented creditworthy consumers obtaining loans.

In May 2016 the FCA launched a targeted Market Study into consumers’ ability to make effective choices in the mortgage market. The FCA plan to publish an interim report in summer 2017 and a final report in early 2018.