In releasing its response to the FSA Mortgage Market Review discussion paper, AMI has called for:
* More consumers to have access to mortgage advice;
* Lenders to retain ultimate responsibility for assessing affordability;
* FSA to not restrict higher Loan To Value (LTV) and Loan To Income (LTI) mortgage products, so as to not limit equity withdrawal or apply unnecessary controls over debt consolidation;
* Procuration fees to remain as a remuneration option and the decision on remuneration to be agreed between the customer and the adviser;
* FSA to recognise the fundamental differences between fast-track and self-certification mortgages and ensure that fast-track mortgages, which are appropriate for low-risk consumers, are not banned.
Robert Sinclair, Director of AMI, said: "The vast majority of consumers have been well served by the mortgage market. We are concerned that the proposed changes, which will protect a small minority, will substantially impact on the choices of the vast majority of consumers. The regulator needs to be mindful of negative unintended consequences that regulation could have on a market still in a state of recovery."
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