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Mortgage firms aghast as FSA goes ahead with red tape plan

The FSA is set to stun the mortgage industry this week by pressing ahead with proposals which force lenders to monitor the product information given to borrowers.

Despite industry warnings that the move could be an admin nightmare which may eventually push brokers out of the mortgage market, the FSA has confirmed that lenders will be forced to ensure borrowers get the correct product documentation.

The industry had expected the FSA&#39s proposals to be overhauled radically after sustained criticism since the plans were unveiled in the regulator&#39s consultation paper No 70 last year.

It is expected product information will have to be given to borrowers before a mortgage offer is given and lenders may have the responsibility of guaranteeing that intermediaries are giving the correct information.

The Council of Mortgage Lenders warned in December last year that intermediaries would be unable to cope with the extra costs of administering the additional product information of up to 100 lenders.

Intermediary Mortgage Lenders Association chairman John Heron says: “How do we ensure that this information is provided? Do we individually check each case? Intermediaries are right to be concerned with the additional bureaucracy.”


Skipton follows the base rate route

Skipton Building Society has brought in the base rate tracker mortgage.The mortgage will have an interest rate of 0.85 per cent above the Bank of England base rate for the first four years of the mortgage for loans of up to 95 per cent of valuation, giving it an initial rate of 6.1 per cent.The […]

Investec Asset Management – Pan European Fund

Monday, 11 June 2001.Type: Offshore Oeic.Aim: Growth by investing in 30-40 European stocks.Minimum investment: £2,000, Euros 3,000.Place of registration: Dublin.Investment split: 100 per cent in 30-40 European stocks.Isa link: Yes.Charges: Initial 5 per cent, annual 1.5 per cent.Commission: Initial 3 per cent, renewal subject to negotiation.Tel: 020 7597 1900.

The mane event

If one of your colleagues came in to work on Thurs-day growling like a lion, chances are they were at this year&#39s PIMS event. If your colleague came in to work with bags under their eyes, raging hangovers and a vague recollection of making a business deal at 3am in the ship&#39s disco, they were […]

Ethical VCT first

I feel I must drop you a line to correct an inaccuracy in an article in the May 10 issue. It states: &#39The launch of the first socially responsible VCT is one option which the fund manager is seriously considering.” For the record, Downing Corporate Finance has beaten Friends because we launched the Pennine Downing […]


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