The power to influence mortgage rates is given to the FCP.
Alistair Darling the former chancellor, has warned that the power to restrict mortgage availability and influence mortgage rates could be in the hands of the Financial Policy Committee.
He advised that the recently created FPC will be given responsibility for UK financial stability, which in theory may include the power to influence mortgage rates.
It is thought in the future, the regulator may influence rates thus restricting mortgage availability based on perceived financial risk as opposed to monetary policy.
Darling has questioned the logic of giving the Bank of England power over all regulation as he questions its effectiveness. The successful creation of a 'super' regulator with complete responsibility for UK monetary policy which can accurately pre-empt any future financial storm, is doubtful.
He added that the government may have decided to place regulation under one convenient roof but ultimately regulation it is still down to each individual body. He went on to say that he does not believe Independent Commission on Banking will end bank bailouts.
Home-owners are already being hit by rising mortgage rates, tightened lending criteria and increased difficulty sourcing a deal, therefore news that things could be tightened further is not good for home-owners or the wider housing market.
Deal Direct recommend would-be home-owners and existing property owners looking to switch deals, do so soon before the mortgage market is subject to further restrictions.
Contact Deal Direct and we will search the entire UK mortgage market for the best deals on offer.
