Networks and mortgage advisers must make sure advice booklets for regulated and non-regulated mortgages do not contain the wrong information, says Charcol senior technical manager Ray Boulger.
Boulger says references to buy-to-let mortgages have had to be extracted from Charcol’s brochures as they come under separate advertising rules to other mortgages which have been regulated under FSA rules since October 31.
BTL mortgages are currently unregulated and therefore come under advertising standards set out by the Consumer Credit Act and the Dep-artment of Trade and Industry. Unregulated mortgages cannot be marketed alongside regulated mortgages.
Under CCA rules, ads must quote the APR of a BTL mortgage as well as the typical APR. Boulger says this could cause considerable confusion as two figures will appear on one page.
Although he praises the work done by the DTI in other areas, he says its advice on BTL is “simply ridiculous”.
Boulger says: “The DTI and the FSA have obviously wor-ked irrespective of each other. I am sure that anyone looking at BTL now wishes it was covered under regulation so they would not have to deal with the DTI.”
Council of Mortgage Len-ders senior policy adviser Kate Davies says: “There has been a collision or overlap between the DTI and FSA. It is easy to drop the ball, which seems to have happened between the two bodies.”