The Council of Mortgage Lenders (CML) has welcomed the new rules and guidance to provide full protection for consumers in the sale-and-rent-back market which were recently published by the Financial Services Authority (FSA).

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.”

• The Council of Mortgage Lenders today confirmed Matthew Wyles, group distribution director of Nationwide Building Society, has been elected chairman of the CML for a second year.

Having spent 2009 as chairman, Matthew will continue in the role through 2010. He will be supported by new joint deputy chairman, Colin Shave, chief executive of GE Money Home Lending Ltd who has taken over from John Heron.

Colin will be joining incumbent joint deputy chairman Martijn Van der Heijden, head of mortgages at HSBC, for 2010.