Regulators and MPs met yesterday to discuss how the government and industry can work together to make mortgages work for every stage of life, with pensions minister Ros Altmann stating people must have fair access to mortgage finance “when they need it”.
Key figures from the mortgage industry met the economic secretary to the Treasury Harriett Baldwin yesterday (16 July) for a bi-annual home finance forum.
Paul Smee, director general of the Council of Mortgage Lenders, and representatives of all major banks, building societies and regulators, were told by Baroness Altmann and housing minister Brandon Lewis that mortgages need to suit everyone from first-time buyers to retirees.
Ms Altmann stated that the government is committed to ensuring that the mortgage market delivers for those who have worked hard all their life.
“We will continue to work with mortgage lenders to ensure their products and practices reflect changing societal realities, such as the increased prevalence of later life working and secure private pension income through retirement.
“We want to ensure that people have fair access to mortgage finance when they need it.”
Minutes for the meeting were unavailable, but speaking after the meeting Ms Baldwin noted the brief given to Which? and the CML to work together on practical steps that could to be taken to improve the transparency of mortgage fees.
“It was great to hear today about the excellent progress that this project has made towards making sure that hardworking families can get the best-possible deal on their mortgage.
“I’m looking forward to continuing to work closely with the industry on this and other important issues as part of our long-term plan for working people.”
These mortgage transparency reforms are expected to be announced later in the summer, according to the Treasury.
Mr Smee added that they take the industry’s responsibilities to borrowers very seriously and hope improvements to the transparency of fees and charges will help make it easier for people to understand mortgage costs more easily.
Brandon Lewis, the housing minister, flagged up that the number of first-time buyers are at their highest since 2007, while housebuilding continues to climb and over 225,000 households have been helped to buy or reserve property since 2010 through government-backed schemes.
“Even more first time buyers are expected to be helped when the government’s Help to Buy Isa launches this later this year.”
emma.hughes@ft.com
