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FSA censures Mortgages Remortgages for self-cert failings

The FSA has publicly censured Doncaster mortgage broking firm Mortgages Remortgages Ltd for exposing up to 80 customers to the risk of being sold an unsuitable self-certified mortgage.

The FSA says between January 2006 and April 2008 the firm failed to make appropriate enquiries about customers’ source of income, expenditure, credit history and debt position to properly assess the affordability of its recommendations.

It also failed to demonstrate the plausibility of customers’ declared income and expenditure.

The case arose from an FSA thematic project looking at the sale of self-certified mortgages.

The FSA says because of the firm’s financial position and the fact that it needs to be able to pay for the customer contact and remediation exercise, it did not impose a financial penalty of £20,000.

FSA head of retail enforcement Georgina Philippou says: “At all times, and especially in times of economic difficulty, mortgage brokers need to give suitable advice to ensure that customers are not unduly exposed to financial hardship in the future. This is especially important in firms like Mortgages Remortgages who specialise in self-certified mortgages and advise customers who are consolidating debts or have adverse credit histories.

“The firm’s failings exposed its customers to potentially significant financial detriment by failing to give proper consideration to the long term implications of the products recommended in relation to their financial circumstances.”


Trouble ahead - thumbnail

Pensions: trouble ahead?

The pace of change in the pension’s space has been little short of astonishing, and has left thousands of employers struggling to keep their pension policy compliant, and also on the right side of current best practice and governance. Many employers, and indeed many in the pensions industry itself, would like to see a period of no change during the next term of government. This would give all sides a chance to catch up and draw breath. 


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