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Plan for cooling-off period on remortgages scrapped

The FSA has abandoned the idea of introducing a cooling-off period for remortgages after the industry said it did not make sense in the mortgage market.

In feedback to CP98, the Draft Mortgage Source-book, the regulator said it was scrapping its plans.

The industry said there is no justification for a cooling-off period because consumers are not pressured into buying anything in the mortgage market.

The FSA statement says: “Those representing the consumer interest favoured the adoption of rules on cooling-off while the industry viewpoint (strongly exp-ressed by many) was that such rules would impose significant burdens without any consumer benefit.”

Chase de Vere managing director Simon Tyler says: “There is no rationale for a cooling-off period. We do not sell people a house, they come to us looking for financing.”

Prudential Premier Mortgage Club national mortgage manager John Malone says: “It was an additional situation which was not supported by lenders and intermediaries. To have a cooling-off period does not make sense.”

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