Mortgage regulation 'improving for consumers'

Posted: 28 Sep 2006 09:58:59 GMT

A report by the FSA suggests that mortgage regulation is getting better for UK consumers.

Mortgage regulation in Britain is getting better for consumers, according to a report by the country's financial services watchdog.

The Financial Services Authority (FSA) has published research on the effectiveness of mortgage regulation for consumers since the agency assumed responsibility for it.

Commenting on the report, chairman of the Financial Services Consumer Panel, John Howard, said: "It is good news to see that consumers are using the new documents that the FSA has introduced to help choose the best mortgage for them."

Mr Howard added that improvements still had to be made and it is "imperative" that mortgage advisors fully comply with the regulations and provide consumers with relevant information at the appropriate time, such as the Key Facts (KFIs).

He expressed concern that new rules from the European Union could affect additional levels of protection provided to consumers obtaining mortgages in the UK.

Mystery shopping research carried out by the FSA in July this year discovered that around one third of shoppers were not given an Initial Disclosure Document (IDD) when discussing lifetime mortgages.

UK mortgage lending figures have risen again in recent months, with more and more consumers mortgaging or remortgaging their homes each year and an increasing number of options available, it is important that they are provided with all the facts needed to make an informed decision.

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