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More than 50% of borrowers aware of loan code

Over half of new borrowers are aware of the consumer protection which the mortgage code and the FSA are intended to provide, according to new Mortgage Code Compliance Board research.

The MCCB questioned 1,000 adults in October last year to gauge what people know about their rights under the code, introduced in 1997, and the role of the FSA in financial services.

It found that 59 per cent of new borrowers were aware of the code, which it claims indicates the success of its You and Your Mortgage leaflet, which must be issued as part of the sales process.

But only 28 per cent of total respondents know about the code.

Of those, 65 per cent believe mortgages offer a fair deal, 61 per cent think enough attention is given to affordability when arranging a mortgage, 65 per cent say charges are fair and 64 per cent believe they are protected against future surprises such as increased rates.

However, 49 per cent of those surveyed believe they will get sympathetic treatment if they experience financial difficulties.

MCCB chief executive Luke March says: “The results show the code is having a positive impact in that new borrowers are increasingly aware of their rights and a majority are satisfied with the way they are dealt with during the sales process.”

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