Speaking at the Council of Mortgage Lenders’ annual conference the CML Chairman stressed the importance of a planned exit strategy from the Help to Buy scheme.
He said that the scheme needed to be time-limited rather than a permanent fixture of the housing market.
Chairman Nigel Terrington, CEO, Paragon Group, talked about the need for a long-term vision and a joined-up strategy for the UK housing market.
He said: "Where our customers have rational expectations of what their mortgage will deliver for them – which is a home – and not see housing debt as the long-term answer to all their financial needs.
“A market where intermediaries don’t veer from over-exuberance to over-despair at the shift of an interest rate.
“A market where lenders have business plans which temper short-term profitability with long-term sustainability.
“Where regulators understand that some rules and restrictions impose cost without protection."
Mr Terrington spoke on the importance of considering the flow of regulatory change, especially the Mortgage Market Review, and ensuring that the Help to Buy scheme works well alongside it.
