View more on these topics

Customers could face &#39info overload&#39

From Jonathan Cornell

CP146 represents the FSA&#39s current stance towards mortgage regulation. The mortgage industry seems to be the last major industry within financial services that is not officially regulated. Until now it has slipped through the grasp of the FSA and the mortgage industry has sought to regulate itself through the Mortgage Code.

While I welcome any legislation that helps ensure that consumers are protected, it is hard to see how the 353 pages of this document take us beyond the existing Mortgage Code.

The main content of this paper seems to be the huge amount of information that the customer needs to be supplied with pre-sale. While I wholeheartedly agree that customers need to be informed, I feel that they are in danger of sufferning an information overload. It advocates the post-sale suitability letter required by the Mortgage Code should be dropped as the FSA feels that consumers might read this but fail to read the pre-application illustration and mortgage offer. Why is this letter required by the FSA for investment business then? I feel that a document such as the life and pensions industries key features document would help pre-sale. Keep it simple! Don&#39t confuse them!

As part of this pre-sale information it advocates comparative tables, however, while within the pensions or investment business it may be possible to compare like-for-like products, I don&#39t think this is useful for a consumer as each consumer will have different needs, such as LTV, self-certification, speed of transaction and such.

And there seems to be at least one glaring absence from this paper – buy-to-let mortgages are not covered. Only mortgages where the property is at least 40% occupied by the borrower or members of his immediate family are covered. So if you buy a house to live in, you are covered, but if you buy a house to let out, you are not.

Essentially, the more we put into this consultation, the more it will help us and our clients.

Jonathan Cornell


Hamptons International Mortgages



Stop moaning about the new exams

From Kevin ReesI write in response to the “long in the tooth” mortgage advisor (Letters, Mortgage Strategy August 19). I&#39m afraid I have no sympathy either for him, or for any of the elder statesmen who are constantly complaining about sitting the CeMap exams. He may well have been in the industry for 26 years […]

Regulators must keep an open mind

It&#39s been barely two weeks since the publication of CP146 The FSA&#39s approach to regulating mortgage sales and already the knives are out for Howard Davies and his mob. Nothing intoxicates some people like a sip of authority and it seems that the FSA has had plenty of it. Chief regulator Davies is reported to […]

CML promotes training initiative for lenders

The Council of Mortgage Lenders is developing a training package to help lenders get staff and their intermediaries up to speed with mortgage regulation, Mortgage Strategy can reveal. Although the initial package will be aimed at lenders, the CML is considering a similar programme for intermediaries. The package will be modular in form to allow […]

Financial firms miss over 50 niche

Financial services providers are not catering to the growing number of consumers over the age of 50 in the UK, research from Datamonitor reveals. Marketing Financial Services to the Over-50s finds that while the majority of over 50s are unlikely to be classified as mass affluent, they are typically wealthier than their younger counterparts and […]


News and expert analysis straight to your inbox

Sign up