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<p>In January 2011, the Government announced its intention to introduce further regulation
in relation to the sale of regulated mortgage contracts to unregulated firms. Following
a review, the Government decided that it would not take forward legislation but would
instead keep the position of contracts sold to unregulated firms under review and
return to legislation if there was sufficient evidence of consumer detriment.</p><p>
</p><p>The Government remains open to further regulation but is yet to see evidence
that any consumer harm has occurred under the current regulatory regime that would
have been prevented by the proposed regulation. Under the current regulatory regime,
firms administering regulated mortgages, including third-party administrators, must
be regulated. This means that they are subject to relevant provisions of the Financial
Conduct Authority’s Mortgage Conduct of Business requirements, including provisions
regarding the fair treatment of customers in arrears. It is also worth noting that
further regulation of this kind would not necessarily enable borrowers to switch to
a cheaper mortgage deal or to materially lower the interest rates they pay.</p>
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