"The Easy Way to Get Your Best UK Mortgage" |
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Mortgage Guide
Click for Full Contents
Finding
your Mortgage
Click for Full ContentsThe new UK Mortgage regulations – an
overview
On
31 October 2004 the Financial Services Authority
(FSA), a governmental body, took over the regulation
of most mortgage sales.
The key changes are that by law you will now get –
to quote the FSA:
“…clear
information about mortgages… in a standard keyfacts
format. This makes it easier for you to compare mortgages
and services from different lenders…
…price information (including the APR) in any
advertising must be clear…
…when you receive advice… [the broker] must
make sure that they recommend a suitable mortgage based
on your needs and circumstances…
…charges must not be excessive…
and…there are new standards offering greater protection
should you get into arrears with your mortgage..”
All this is to be greatly welcomed.
However
what isn’t so great is the FSA’s new animal
- the
multi
tied adviser.
This is seen as being bad for consumer choice.
It will add to the confusion.
Until the change in the regulations you could get financial
advice in two ways: through an IFA – who could
recommend any mortgage on the market to you, or a tied
broker, who could only recommend one lender’s
mortgages.
This
approach was called polarisation.
However depolarisation, has introduced
a third type: the multi-tied adviser. Consumers now
have more difficulty working out which type of broker
is best for them.
The way to do this is to check the key facts
document– which you should be given at
the first meeting with the broker.
This explains what type of advice is being offered,
and sets out the charges. See
The
Keyfacts and Initial Disclosure Documents
However
the
experts are questioning whether most people will bother
to look through all this extra information.
As with so many financial documents they can look so
complex that people won’t get round to reading
them.
Some professionals feel the reason the FSA has done this is because they want to get rid of the independent small practitioners and only deal with big firms. That might be good for the FSA - easier to regulate and all that - but, if true, it is very bad news for consumers.
It
is the, independent sole traders who often have the most
experience and will get you the best deal. These guys are
usually older, wiser - often ex Building Society or retired
from other senior posts - and preferable to the pimply youths
and youthettes employed by the big firms. To them all you
signify is a sales target they are being "motivated"
to acheive by their venal management.
To make sure you are getting the best deal regardless of
what type of broker you are dealing with always SHOP
AROUND. Get more than one quote. Ask different
brokers.
Let the best one win your business.
To read more on this subject please see the list below or your mortgage guide or your home buying guide
Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below
More About UK Mortgage Brokers and the new regulations
What Type Of Mortgage Advisers / Brokers Are There?
Which Type of Mortgage Broker Is Best For You?
How Do I Find A Mortgage Broker?
Questions To Ask Your Mortgage Broker
The Keyfacts and Initial Disclosure Documents
Mortgage Broker Qualifications
Who Regulates Mortgage Brokers?
How To Check Up On A Mortgage Broker
Complaining About Mortgage Brokers
The new regulations – an overview
Read On about How to Find your Mortgage
Going
direct
Going through a Mortgage
Broker
Going
through an IFA
Going
through an Estate Agent
Going
through other websites
Read On / Mortgage Guide
Choosing
Your Mortgage
Types of UK Mortgages
Remortgaging
Where to Get Your Mortgage
Getting Mortgages in Principle
Read On
Guide to Buying Home in the UK
Guide to UK Home and Mortgage Insurance
Read more about Finding Your Mortgage
or
See contents of Full Mortgages Guide
or
See contents of Home Buyers Guide
or
I've read enough for now and want to get a free Quick Mortgage Quote
Going
direct
Going through
a Mortgage adviser
Going
through an IFA
Going through
a Mortgage Broker
Going
through an Estate Agent
Going
through other websites
How to get a Mortgage
The step by step guide on how to get a mortgage with special tips
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Mortgage
Basics
How
to Choose your Mortgage
Types of Mortgage
Where to Find Your Mortgage
Getting a Mortgage in Principle
The FSA, or Financial Services Authority, is a UK government body that implements regulations covering most financial companies, including all UK mortgage lenders. UK mortgages are covered by the new FSA regulations which came into force in October 2004. One of the main benefits of the new FSA regulations is that you are legally entitled to fair, impartial information about the mortgage products you are considering. This makes it easy to compare different UK mortgages to see which is best for you.
People looking for UK mortgages should generally be happy with the new FSA regulations, as they mostly exist to ensure everyone gets the best mortgage for their situation. This page contains more details about the new FSA regulations and how they affect people looking for mortgages in the UK. It includes a note about the different types of mortgage advisor – it is worth reading this if you are looking for a UK mortgage as you need to understand what type of mortgage advisor you are looking for. Remember that all types of UK mortgage advisor are covered by the new FSA regulations.
