FSA urged to tighten self-cert regulation

A leading financial inclusion advisor has called for tighter regulation of the self certification mortgage sector.

Mick McAteer, former director of policy at Which?, told the BBC that the Financial Services Authority (FSA) should be doing more to crackdown on rogue traders.

In an interview on Radio Four, Mr McAteer spoke about a programme due to be aired on the station which claims that a small number of lenders are encouraging people to lie when applying for a self cert mortgage.

"You're seeing a feeding frenzy in the market, you're seeing fierce competition because the lenders of the financial services companies are killing themselves to get market share," he said.

"And to cap it all really you have very, very weak regulation at a time when possibly millions of people are vulnerable to interest rate rises and may have been mis-sold mortgages.

"And I think it's about time the FSA took tough action and enforced action against these predatory lenders," added Mr McAteer.

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