MBE 2011: KFI may not be scrapped under European mortgage directive
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The Key Facts Illustration may not be scrapped as part of the European mortgage directive.
As it stands, proposals in the directive call for the KFI to be replaced by a European Standardised Information Sheet across all European countries.
However, speaking at the Mortgage Business Expo in London today, Isabelle Audigier, a representative from BIPAR, the European Federation of Insurance Intermediaries, told delegates: “Last week there was a UK MEP who called for those countries that already have an instrument in place, such as the KFI, to be able to keep that. However, it remains to be seen if his amendment will be adopted.”
Rebekka De Nie, also a representative from BIPAR, added that the wording of the directive has been changed so the rules no longer work “in the best interests of consumers” but instead “take into account the rights and interests of consumers”.
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Readers' comments (5)
Mike Jennings | 16 Nov 2011 4:16 pm
As a mortgage adviser for over 20 years I have to say that the KFI as it stands is a major hurdle for doing business. It is, at best, misleading and confusing. Not a help to clients in any way.
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David Winder | 16 Nov 2011 4:55 pm
I couldnt disagree with Mike more, i tend to find the KFI an excellent selling tool if used correctly, most advises especially bank based ones dont go through them correctly and that itself can be used to justify yourself as an advisor.
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Anonymous | 16 Nov 2011 6:03 pm
David as a bank based advisor who does not work on commission! I think a "kfi" is a great tool that we use correctly everytime
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Bob Riach Riach IFA | 17 Nov 2011 9:33 am
I have been a mortgage adviser for over 30 years. The KFI is an excellent document, the idea was that all providers offered an illustration in the same format so that it was easier to compare illustrations between different products and Lenders removing the small print.
This has been successful and Clients understand them, there are some anomalies with them no system is perfect and I believe that the should stay
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norman phillips | 17 Nov 2011 2:12 pm
As a UK broker who has a French mortgage, I am now appalled by the terms and conditions that are being applied to it, none of which were at all clear at outset - and I am a fluent French speaker. There is much more of a caveat emptor attitude with French Banks, and the emptor isn't given much of a chance. UK regulation maybe onerous and possibly over-protective of the customer but my experience in France is so poor that I would rather have had UK rules.
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