impact of the continuing Eurozone crisis. But regulation is inflicting further damage by making it extraordinarily difficult for new mortgage providers to enter the market. The regulatory approval regime is so tough that it took Tesco Bank three years to launch its new mortgage products.16 Few companies could cope with such delays in entering any market. It is important that regulators do not impose unnecessary sanctions on new products or new banks, as this will constrain their ability to lend in the mortgage market.
The Financial Services Authority (FSA) and its successor should ensure regulatory scrutiny of potential entrants to the UK mortgage market is carried out quickly and reflects consumer needs, to get new finance circulating as soon as possible.
Woodberry Down, London ÂŠ Berkeley Group