CML agrees with regulation extension 'in principle'

The Council of Mortgage Lenders (CML) has stated that it agrees with proposals outlined by the Treasury to extend regulation to cover second-charge mortgages.

According to the group, all secured lending should be handled by the Financial Services Authority (FSA).

This would allow for the creation of a "coherent and comprehensive framework" that would bring it more in line with EU regulation.

CML director-general Michael Coogan noted his support for some of the policies announced by the Treasury, but he wants to ensure that there will not be any negative consequences by extending regulation.

He observed that in the past strategies had been introduced that had "dampened incentives" for investment within the private rental sector and the government should try not to repeat this mistake.

The body recently announced that it supported elements of a review of the mortgage market carried out by the FSA, describing them as well-intentioned.