From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

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CML welcomes publication of FSA rules on sale-and-rent-back

Published: 29 January 2010

The Council of Mortgage Lenders welcomed today's publication by the Financial Services Authority (FSA) of new rules and guidance to provide full protection for consumers in the sale-and-rent-back market.

Lenders have for some years campaigned for statutory regulation to improve protection of home-owners who may be considering sale-and-rent-back as a means of dealing with mortgage arrears.

Lenders welcomed the FSA's decision to move quickly to introduce interim regulation of sale-and-rent-back last July to tackle the most immediate issues. Now the FSA has published details of the scheme for full statutory regulation from 30 June 2010.

Commenting on today's FSA announcement, the CML's director general Michael Coogan said:

"We are pleased to see FSA pressing ahead with its plans to reinforce protection in an area where there has clearly been potential detriment for borrowers in arrears. Rules guaranteeing security of tenure for five years and banning cold-calling by sale-and-rent-back firms are particularly welcome. 

"Borrowers in arrears should always continue discussing their problems with their lender, who will work to devise a solution depending on their individual circumstances. There are likely to be a number of options for them other than sale-and-rent-back, but it is re-assuring that borrowers who may still wish to consider this option will be better protected."

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