Mortgage brokers given warning by regulator
June 5, 2008
Mortgage brokers across the UK have been warned by the financial regulator, the Financial Services Authority, that they must ensure that they are providing clear, transparent, and fair information to consumers to ensure that they get the best deal on a mortgage based on their needs and circumstances. Times are already difficult for many brokers, with many lenders turning away applicants, and others who are now offering deals directly rather than through brokers.
However, recent report shows that many consumers – particularly first time buyers – are still using brokers in order to try and find out more about mortgage products. The Financial Services Authority has stated that brokers must inform consumers of the best deal available of them, even if this means that the consumers has to go directly through the lender rather than through the broker.
The FSA wants brokers to ensure that they are very clear to consumers about which is going to be the cheapest option and also which route to take the get the cheapest deal. One official said: “For example, if a customer goes to a whole of market intermediary, and the intermediary recognises that, in current market conditions, there may be more competitive products in the market other than those available to the intermediary, that may be of interest to the customer, we think that there must be acknowledgement of this.”
A recent report showed that the number of first time buyers contacting brokers in order to look into mortgages had gone up at the start of this year, with more and more novice property purchasers looking for advice in the current turbulent mortgage market.
Recent news:
- The base rate cut failed to benefit credit card customers
- 2008 to be a tough year for mortgage lenders
- Mortgage lending still on the decrease
- Consumers could be hit by rising mortgage rates from lenders
- Mortgage market will not immediately benefit from rescue plan
- Most repossessions involve sub-prime lenders A recent report has shown that the majority of repossession cases in the UK involve sub-prime lenders. The research was carried out by the BBC in the light of the rocketing level of repossessions taking
- Interest rates could fall twice by June Homeowners and first time buyers have faced tough times over the past year, with a series of five interest rates between august 2006 and July 2007 taking the base rate from 4.5% to 5.75%. For
- Cheap fixed rate homeowners see light at end of tunnel Customer who are on cheap fixed rate mortgages that are due to come to an end are finally able to see the light at the end of the tunnel after months of fretting over how
- Many worried about effects of expiring fixed rate deals According to recent reports many consumers and industry professionals are concerned about the flood of cheap fixed rate mortgage deals that are due to come to an end in the coming months. Many homeowners took
- PPI still being mis-sold to millions Over the past couple of years there has been a major crackdown on the sale of Payment Protection Insurance to consumers that were not suited to the plans. However, according to consumer campaign officials and
Comments
One Response to “Mortgage brokers given warning by regulator”
Got something to say?
[...] Mortgage brokers given warning by regulator [...]