Mortgages Direct is supporting the Financial Services Authority decision to conduct a review of Key Facts Illustrations.
Peter Gladdy, director of Mortgages Direct, says: “I’m relieved to see that the FSA are addressing the pressing issue of KFIs but there’s still a lot to be done.
“The whole point of producing these documents was to make it easy for borrowers to shop around and compare different mortgage products.
“But at the moment there is a complete lack of consistency.
“Some KFIs are just a few pages long while others are overcomplicated and can be as much as 12 or 14 pages in length, making it nearly impossible for people to compare like with like.
“There are also continuing problems with some lenders refusing to verify data on sourcing systems to encourage use of their own systems.
“This means a lot of rekeying for intermediaries, causing significant delays.
“The FSA’s review is a step in the right direction but I believe that as an industry we, lenders and intermediaries, urgently need to get together to put agreed ‘best practice’ guidelines in place for KFIs.”