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Call for advisers to provide FTB brochures

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The chair of the European Parliament’s Economic and Monetary Affairs Committee has called for advisers to provide first-time buyers with an obligatory brochure as part of the European mortgage directive.

Sharon Bowles, MEP for South-East England, says all mortgage lenders and intermediaries should be required to give first-time buyers a standard brochure containing key information about the house-buying process.

Bowles says: “Speaking to my constituents, I know how confusing it can be when you are buying a house for the first time. It can feel as though you have to make several life-changing decisions without fully understanding what the consequences will be.

“I believe that all mortgage lenders and intermediaries should be obliged to put a standard brochure for first-time buyers in their hands, which would give basic definitions of all the key elements of mortgage lending, as well as pointing to where to go for more help.”

She stresses that there is a crucial difference between information being made available to consumers and actually being given to them.

Bowles adds: “We need to focus on financial education for consumers so that they can make well-informed decisions on which mortgage is best suited to their needs.”

The Liberal Democrat MEP has called for the measure to be included in the directive as part of her response to the paper.

All MEPs have been invited to submit amendments to the directive, which will be discussed by the Economic and Monetary Affairs Committee on October 24 and either voted through or rejected by the committee on December 19.

The next stage of the process will be for the European Parliament to vote through the amendments, which is expected to take place in February 2012.

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Readers' comments (2)

  • As a sole-trader adviser I used to do just that. The customers loved it, I was congratulated on the usefulness and conciseness of the information, and those customers have returned to me as their trusted adviser. However, the regulator saw to it that the cost and resource involved in the set up, wording, definition, compliance checking, justification of whether or not I was entitled to provide it etc. etc, made the whole exercise too worrying to continue with. The CML used to issue a wonderful booklet (How to Buy a Home in England and Wales), but they seem to have stopped keeping the information current - same reasons perhaps?

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  • O Gawd. If we waited for pointless MEP's to come up with ideas like this we'd all be long dead. Listen lady, some of us, nay a lot of us already do this - and we explain very clearly to them that since the EU and the UK and the US gummints are not to be trusted with running our money, ever, FTB's will be in the lap of the Gods setting out to borrow a shed load to buy a property likely to decline in value thanks to your epic mishandling of the economy. 1 out of 10. Bottom of the class.

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