Mortgage Regulation

Mortgage regulation is still relatively new and we have planned the effectiveness review in stages to identify trends and measure progress against the intended outcomes over time. Mortgage advisers have had a relatively benign economic climate in which to adapt to mortgage regulation.
The Financial Services Authority (FSA) is an independent regulator set up by the Government to look after the financial services industry and protect customers. Mortgage Regulation was introduced on 31st October 2004 and replaces the previously known Mortgage Code.
This is a good moment to ask whether mortgage regulation is working and to address any shortfalls. For example Northern Rock, Equitable Life, The Pension Crisis, The Endowment Crisis, shares short selling etc.

. FSA mortgage regulation headache" The one FSA mortgage regulation that will put considerable strain on this process is the need to provide a "durable" (printed or emailed) personalised Key Facts Illustration (KFI) for telephone based mortgage enquiries, offer stage proposals, product switches and party additions or removals.
Once you have spoken to an adviser, they will send you a Key Features Illustration (KFI) which fully complies with the requirements of the Financial Services Authority Mortgage Regulation.
Letting may not be included. However if you apply for a mortgage on a “buy to let” property, a commercial property or a property less than 40% of which will be used as your prime residence, the Society will offer you the same level of service as other borrowers but your mortgage will NOT be covered by mortgage regulation and you will NOT enjoy any of the protection which it offers.
AMI is a broker body to help them with the FSA. It is AMI’s objective to play a critical but constructive role within the mortgage regulation process – offering insights from the “front line” of the intermediary mortgage market.
Also The CML continues to play a vital role in consulting and advising the FSA on its approach to mortgage regulation.

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First time buyers should be even more careful as they do not have any property buying experience.It is well known that buying a property is probably the biggest financial comment most people will make, so research and great care should be taken in order to try and make the right decision which can potentially effect your financial future. There is a common saying to indicate the most important factor that can effect a property is location, location, location.

So knowing the area is important. Is the area near decent schools, does the area have a good road network, are there parking issues, is the area prone to flooding or subsidence (usually in a clay soil based area). Then there are more local issues to be aware of for example are there tall trees or shrubs close to the house, have there been neighbour disputes.

The main structure of the building should be checked and often a full property inspection can be more prudent and cost saving than a general mortgage valuation that is basic and does not go into details about many important factors. If certain areas or concern has been highlighted then further specialised reporting should be carried out. These may include a full NICEC electrical inspection, CORGI gas inspection, structural engineer report for roofing and drains. Others may include a full damp and timber treatment report or thermal insulation and an energy efficiency report.

These inspections can be expensive but if there are serious problems with the property they can allow the potential buyer to make the correct choices or potentially lower the asking price.

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