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Consumers confused by mortgage regulation

Date: Mon, 08 July 04 Analysis

Consumers have been left baffled by new regulations governing the sale of mortgages, brokers have claimed.

Under the new rules, which came into force last Monday, the only brokers who can call themselves independent are those who accept payment in the form of fees from customers rather than commission paid by mortgage lenders.

This means that some advisers cannot portray themselves as independent, even if they are picking loans from across the market, the Mail on Sunday newspaper reports.

Consequently, consumers are being left confused as to whether the advice they pay for is truly independent

Mark Chilton, chief executive of Purely Mortgages, claimed the new the regulations have "devalued the term independent".

London & Country spokesman, Peter Gettins, commented: "Under the new system, the potential confusion over what independent means is considerable."

London mortgage broker Alexander Hall has responded to the new rules by offering a fee-paying option, which means it will be allowed to continue to use the independent tag.

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