At a discussion at the House of Commons last week sponsored by GMAC-RFC and chaired by Labour MP John McFall, the lender's chairman, Stephen Knight, raised the issue and called for action.
Knight says: “I think the FSA has done a fabulous job and agree with about 90% of what it has done but KFIs can be seven pages long and could cause borrowers angst.”
He says the scale of the potential problem is clear when you consider that about 30,000 KFIs are expected be issued daily, and 10,000 applications submitted.
Knight is keen for more work to be done by the FSA and the industry to make the documents shorter and more accessible to borrowers.
At the discussion, Financial Capability: Making informed decisions about mortgages, Nationwide supported Knight's view.
McFall, who is also chairman of the Treasury Select Committee, agreed that a summary box or 'health warning' would be useful to save clients having to wade through so much paperwork to get to the important points.