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Clear future for mortgages

Date: Fri, 29 Oct 04 Analysis

The new FSA regulations will bring in consistency and cut jargon says the head of product operations for Bradford & Bingley mortgages.

David Bitner said the key factor in the new regulations was greater consistency between mortgage providers, allowing house-buyers to compare products and to understand the terms and conditions.

From November 1st the Financial Services Authority will be taking control of regulation in the mortgage industry - until now the sector was self regulating.

He told BBC Radio Five Live's 'Breakfast': "The way that the companies advertise will change: they'll bring up a lot of the small print that's there that's hiding down the bottom that consumers can miss and bring that in to the main body of the advert.

"It's a step in the right direction," he added.

Regarding suggestions that mortgage applications would now take longer to complete, he said: "It won't be that much longer. I think what the FSA have been very careful in doing is stipulating the key things that they want you to cover when you're sat down with a borrower, making sure that the borrower goes through the same process no matter where they go."

And he stressed that in the longer term borrowers will benefit because they will have a regulator there.

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