Mortgages fall under the auspices of the Financial Services Authority (FSA) from today.
Under the new regime borrowers can expect improved protection and wider scope for seeking compensation when they believe they have been miss-sold a product.
FSA chief executive John Tiner said: "Under the new regime, consumers will continue to receive the benefits of the highly innovative UK mortgage market place, marked by a wide range of products, providers and delivery and advice channels."
"An early priority for us will be to enforce the perimeter of the new regime and crack down on any firms that may consider continuing with unauthorised and illegal mortgage business."
The financial services watchdog takes on its new role following the introduction of the Financial Services and Markets Act 2000.
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