The Consumer Panel welcomed the Treasury's decision to regulate mortgage advice; along with other consumer bodies, we had argued in favour of this for several years. Our main concerns are that disclosure should be clear and comprehensive, that there should be a high standard of professional competence and that consumers in arrears have appropriate protections.

The Panel's most recent public statement on mortgage regulation is contained in its response to the FSA's Consultation Paper 146 - The FSA's approach to regulating mortgage sales. We argue against the FSA's proposal for three types of regulated selling process. Instead, the Panel proposes a straight choice between either an advised mortgage purchase, or an "execution only" purchase, where the customer buys a mortgage knowing clearly that they have received no recommendation from the seller.

There are still some types of mortgage which would be outside the scope of regulation as envisaged in CP146, but which we believe should be brought under the FSA's remit - second charge mortgages; buy-to-let mortgages, small business mortgages and home reversion schemes.