Letters to the Editor


For MMR’s sake MPs need to pull their socks up and do better Discuss industry topics, respond to letters, or start new discussions


Sir, Your magazine recently encouraged us to write to our MP to let them know what we think about the FSA’s proposed reforms of the mortgage market via the MMR and other recent Consultation Papers, so I did. My local MP is David Mowat, Conservative


MP for South Warrington and I have just received his response, over a month after I wrote to him. Incidentally, it was sent out in a House of Commons envelope with the first class stamp on it – aren’t we all supposed to be saving money? Shouldn’t the government take the lead here? I have to say that his letter does not in any


way address the issues raised in my email to him and I have to wonder if he even read it at all. Certainly, as a constituent I am disgusted at the lack of interest or concern and I suspect that he has consulted some ‘higher- up’ in the party who has composed a bland response on behalf of numerous MPs who have received correspondence on the subject of the FSA from mortgage brokers. I set out his reply here so that other


intermediaries may compare it with the replies they have received so we may perhaps shame our representatives into actually representing us! Thank you for contacting me about the


Financial Services Authority (FSA) and self- certified mortgages. The Government will continue to work with


the FSA, mortgage brokers and consumer groups to ensure a mortgage market that is sustainable for all participants. It is essential that UK banks and building societies lend responsibly. The FSA’s Mortgage Market review assesses the case for regulatory reform of the mortgage market. The responsible Lending paper forms one part of what is an ongoing consultation process. Further details on the FSA’s proposals, particularly on transitional arrangements, are awaited in further consultation papers. The Government welcomes the FSA’s review, and encourages everyone to engage


constructively in that process. Lord Turner of Ecchinswell (Adair turner), who chairs the FSA, has called for a debate on finding a balance between consumer protection and consumer responsibility, and it is right for interested parties to join in that debate. Thank you once again for taking the time to


contact me. Best wishes, David Mowat MP, Warrington South What a load of bullshit. My email was not even about self-certified


mortgages, so that was a good start! David Mowat is a new MP and was


only elected this year and may not want to rock any boats but as a constituency representative he has not made a great start. My email to him was critical of the FSA


but I also have many constructive points to make and we need our MPs to engage with the issues of regulation to ensure that the replacement to the FSA is not simply a re-hashed MCOB et al and that the Treasury does not simply recruit all the same people from the top of the FSA that got us into this position in the first place.


I sent an 18-page


response to the previous MMR Consultation Paper and offered to send him a copy – you can see how well that offer went down! I expect to send an even longer one to the CP published this week. I appreciate that the new government have


a lot to do, but it was their idea to replace the FSA so they need to hear the views of industry practitioners who meet and review real consumers’ circumstances on a daily basis – not a bunch of failed economists who sit in their ivory towers thinking up ever more complex processes but couldn’t begin to understand the needs of real clients. Not everyone lives in the Home Counties, earning a six figure salary and has a ‘vanilla’ mortgage. Ordinary people have real problems and a mortgage intermediary is one of the few


people who will visit someone in the own home at 8 o’clock at night and find ways to relieve their worries and concerns – and save them money! I shall be writing again to Mr Mowat to let


him know that I find his response inadequate, not to mention insulting, and I expect him to do better next time.


Dave Espin Compliance manager, Yes Financial Services Northwich, Cheshirel


Sir, Regarding your online coverage last month of LSL Property Services’ latest buy-to-let index that showed landlords had reason to celebrate in October as tenant arrears dropped significantly and rents rose for the ninth consecutive month. I’m not surprised by this news at all,


in fact it is the inevitable consequence of economic and political events. At the start of the credit crunch we saw a dramatic reduction in mortgages available at 90% loan to value or higher. Coupled with the previous Government’s tremendous mistake over further education funding, this has led to a significant under-class of people unable to buy due to lack of a 10% deposit (or larger) coupled with unsecured debt - the two main factors which will ensure that an individual will not get a mortgage. As a result the first time buyers of three or four years ago are now trapped with two options: stay at home or rent. Unfortunately the FSA’s MMR proposals seem designed to make matters worse - so if you are a landlord with a buy-to-let portfolio you should do very nicely until the world-wide economy recovers, which not likely to be any time soon!


John Morgan By email


Letters to the editor are welcome and may be edited for publication. Write to the address on page 3 or email nia@thepublishinggroup.co.uk


mortgage introducer DECEMBER 2010 21


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