You are here: Home - Uncategorized -

Mortgage advice ‘leaves a lot to be desired’

Written by:

Watchdog the Financial Services Authority (FSA) has said that firms selling mortgages have to improve the quality of the advice they give to homebuyers, most of whom are making the biggest saving and investment decision of their lives by purchasing property.

The FSA’s latest survey of the mortgage arena, covering 252 firms, found that only a third of mortgage advisory firms surveyed could prove they gave customers “suitable advice”.

Failings included inadequate assessments of customers’ circumstances, poor staff training and poor record keeping, all of which were not conduicive to helping borrowers make a sound saving and investment property-buying decision.

Clive Briault of the FSA said: “We found significant failings in the advice-giving processes in a number of mortgage firms. It is essential that firms have robust processes in place, so they treat their customers fairly and provide suitable investment advice.”

The FSA was particularly concerned that some consumers were being sold mortgages without a proper assessment of how they would be repaid.

For example, the FSA already knew that 15% of borrowers took out interest-only mortgages with weak or no saving and investment repayment plans in place to pay off the capital amount at the end of the term.




Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Firms risk fines for paltry pay rates

The Government has announced its intention to fine firms £200 for each worker that they pay under the statutory national minimum wage.