Mortgage blog: Why you’re set to benefit from better mortgage advice

Date:

Wednesday 31st October 2012

The FSA is introducing new rules on mortgage advice

Tough new rules governing the mortgage market in the UK have been unveiled by the Financial Services Authority (FSA). The regulator's Mortgage Market Review has been published and contains a number of proposals designed to ensure more responsible lending. The recommendations also include plans to provide protection for borrowers ‘trapped' with their current lender.

One of the most important proposals announced by the FSA is that the vast majority of Brits will have to seek advice from a professional mortgage adviser by 2014. We look at the new rules and how they will affect you.

Banks and building societies will have to offer professional advice by 2014

The Daily Mail reports that the plans outlined in the Mortgage Market Review mean that "many will be forced to take financial advice to get a home loan". One of the biggest changes to the UK's mortgage market will see virtually all mortgages taken out in a bank or building society branch or by telephone require professional advice.

The Mail reports that the only borrowers who will not have to take advice are those who make ‘non-interactive' applications over the internet or by post. In addition, so-called ‘high-net-worth' individuals earning at least £300,000 or with £3million in assets will be able to opt out of receiving advice.

If you have done your own research, you will still be able to tell a bank or building society which mortgage you want and you can reject any advice or recommendations given. And, if you start an application online and you only using the telephone to obtain factual information, you will also not have to take advice.

While this move is designed to ensure that everyone receives advice from a qualified professional before they take out a mortgage, critics believe it will drive up the price of home loans. This is because banks and building societies will be required to ensure that all their advisers are qualified by 2014. Homebuyers and those remortgaging to borrow more may also find it takes longer to get a mortgage.

Martin Wheatley, managing director of the FSA, said: "These new rules will help create a more sustainable market that works well for everyone, whether they are a borrower or a lender. We recognise that many lenders are now using a far more sensible set of lending criteria than before, but it is important that these common sense principles are hard-wired into the system to protect borrowers. We want borrowers to feel confident that poor practices of the past, which led to hardship and anxiety, are not repeated."

Keith Osborne from whathouse.co.uk said: "On the whole, I welcome these proposals. Ensuring that you receive tailored mortgage advice from a qualified professional can only help to ensure that you get the right deal for you."

Click here to find out more about how whathouse.co.uk can help you find the right mortgage.

 

New Homes by David Wilson Homes

Abacot Fields
Abacot Fields, Station Road, Honeybourne, Evesham, WR11 7QG
NOW AVAILABLE from £235,000
Nestled on the outskirts of the Vale of Evesham is Abacot Fields, an attractive development of new homes. This stunning new development sits within...
Abbey Park
Abbey Park, Llantarnam Road, Llantarnam, Cwmbran, NP44 3BG
NOW AVAILABLE from £250,000
Situated in semi-rural Llantarnam, Abbey Park is an exclusive range of three, four and five bedroom homes in a quiet retreat just outside the vibrant...
Aginshill Meadow
Aginshill Meadow, Yallands Hill, Monkton Heathfield, Taunton, TA2 8NA
NOW AVAILABLE from £275,000
Aginshill Meadow, Monkton Heathfield is an exciting development of luxurious four and five bedroom detached homes within close proximity of the...
Ashcroft Place
Ashcroft Place, Kiln Road, Thundersley, Benfleet, SS7 1SJ
NOW AVAILABLE from £299,995
Ashcroft Place is beautifully situated with excellent road and rail links, yet close to country parks and the seaside. London Liverpool Street and...
Babylon Field
Babylon Field, Main Road, Higher Kinnerton, Chester, CH4 9PF
NOW AVAILABLE from £174,995
Located in the picturesque village of Higher Kinnerton, Flintshire, but only 5 miles from the historic city of Chester, is Babylon Field. Benefitting...
Barrowby Edge
Barrowby Edge, Barrowby Road, Grantham, Lincolnshire, NG31 8SR
NOW AVAILABLE from £182,995
Barrowby Edge can be found to the west of Grantham town centre. Close to rolling countryside and a short drive from Grantham's historical town centre...
Beaufort Park
Beaufort Park, Station Road, Royal Wootton Bassett, Swindon, SN4 7EE
NOW AVAILABLE from £120,000
Beaufort Park in Royal Wootton Bassett is a wonderful development of one, two, three, four and five bedroom homes located within walking distance of...
Bedford Meadows
NOW AVAILABLE from £238,995
Bedford Meadows offers a range of traditionally designed homes on the western edge of Bedford. It's perfect for both first time buyers and families...
Blundell's Wood
Blundell's Wood, Foundry Lane, Highfield, Wigan, WN3 6BW
NOW AVAILABLE from £162,495
Blundell's Wood is located in the sought after suburb of Highfield in Wigan. With its range of three and four bedroom properties in our latest...
Bodington Manor, Adel
Bodington Manor, Otley Road, Adel, Leeds, LS16 5PT
NOW AVAILABLE from £514,995
Set in the attractive and affluent suburb of Adel, located to the north of the Ring Road in north Leeds, is the luxurious development of Bodintgon...
Bourton View
Bourton View, Bourton Way, Wellingborough, Northamptonshire, NN8 2LF
NOW AVAILABLE from £284,995
Bourton View is a newly launched development of traditional 3 and 4 bedroom homes, on the edge of Wellingborough. Rolling countryside is within easy...
Brecon View
Brecon View, Holloway Street, Gornal, Dudley, DY3 2EF
NOW AVAILABLE from £180,000
Brecon View is an attractive development situated in the quiet village of Gornal with a wealth of local amenities right on your doorstep. Due to...