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E-loans look set for conduct code

E-mortgage websites offering homebuyers comparative mortgage tables and product information could soon come under a code of conduct from the Mortgage Code Compliance Board.

The industry watchdog is concerned that firms are not being clear about whether they are giving advice or simply providing information which it says could be steering homebuyers to the wrong product.

The findings come from MCCB working party report on the e-mortgages market which conducted research earlier in the year and will submit its final recommendations early next year.

The board says risks to the consumer include not being able to distinguish between information and advice bec ause many firms seek information on consumer needs and then select products on the basis of the responses given.

The working party is also concerned about the quality of information which it says can be insufficient, inaccurate or inappropriate and slanted towards the most profitable products.

MCCB chief executive Luke March says: “An e-mortgage code of conduct will soon become essential because of the growth in internet mortgages. Nearly all lenders now have websites as do almost 200 large mortgage brokers.

“We intend to consult widely so that, when we introduce the e-mortgage code next year, it will be helpful to homebuyers and supported by the entire industry.”

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