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‘Promotion rules making firms hold back advertising’

Mortgage firms are holding back from advertising because of concerns about new financial promotion rules, according to Mortgages plc.

The lender is concerned that calculating requisite details such as representative APR may be out of reach of the expertise of some smaller firms and sole traders.

In research undertaken by the all-status lender, 24 per cent of 250 mortgage adverts reviewed were non-compliant. The top five common errors were using old risk warnings or none at all, not displaying an APR, not displaying an adverse credit warning and using incorrect wording when referring to the FSA.

Mortgages plc has created a free guide for mortgage intermediaries on financial promotions.

Head of marketing Julian Wells says: “It became apparent to us that some intermediaries were holding back from advertising. In such a fiercely competitive market, brokers cannot afford to hold back on marketing activities bec-ause of a fear of getting something wrong.”

Mortgage Portfolio Services mortgage planner Simon Chalk says: “The rules are incredibly complicated and some firms don’t have the time and capacity to go through them. But don’t let it put you off. My advice to anyone is to seek the help of a compliance consultancy firm.”

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