CML responds on Right to Buy consultation

By Bridging Loan Directory -

Responding to today’s announcement by the government of its consultation on a revitalised Right to Buy programme, Council of Mortgage Lenders director general Paul Smee says:

“In principle, we welcome this consultation on changes to Right to Buy, and support the proposal to replace on a one-for-one basis new RTB sales with a newly built affordable home.

“It is worth noting that the FSA’s recently-published mortgage market review proposals would require advice to be given on all lending to Right to Buy borrowers, which is a significant protection that we think makes sense.

“As with all other mortgages, lenders will need to conform to all relevant regulatory requirements, reflect their own risk appetites and take account of both the borrower’s circumstances and whether the property represents adequate security, just as they do on all lending.”