The Mortgage Market Review proposals by the Financial Services Authority (FSA) have been scrutinised by local MP Marcus Jones in Parliament. The Mortgage Market Review set out proposals for major reform of the mortgage market.

The FSA has already been forced to defend the review following criticism from the Council of Mortgage Lenders which has claimed that the new rules would make it impossible for approximately 150,000 home movers and first-time buyers to move within the next year.

Marcus Jones MP, elected to Parliament in May, raised the issue during Parliamentary Questions on Tuesday 16 November. He asked the Financial Secretary to the Treasury what steps the Chancellor can take to ensure that the FSA’s mortgage market review proposals do not have a disproportionate effect on home buyers and the housing market, particularly at a time when the Government is trying to encourage growth through the private sector.

Commenting on the proposals, Marcus said: “Although I do not wish to see lenders granting risky mortgages to those who cannot pay, my concerns are that the proposals may throw the baby out with the bath water and restrict many looking to buy a home or re-mortgage from doing so, which would be a great shame and detrimental to encouraging private sector growth.

“I intend to ask a series of additional questions of the Government as this issue is of significant importance to many people living in Nuneaton.”