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Consumers to benefit from improved mortgage details

Date: Thu, 19 May 2005

Calls to improve mortgage details could help benefit a number of consumers.

The Financial Services Authority (FSA) has raised concerns that some compulsory key facts documents, which are intended to deliver clear and simple information to borrowers, are not yet up-to-standard.

The FSA is requesting that all mortgage lenders review their documentation with the aim of ensuring they are providing customers with clear and accurate details of products.

"We acknowledge the effort firms have made to produce the new mortgage disclosure documents and in our review we have seen some good examples," said the FSA's managing director of retail markets.

"However, we also found cases where documents were not in line with the format and content required by our rules or were too long and written in overly-legalistic language."

Around 80 per cent of firms sampled by the FSA had documents which contained inaccuracies and the FSA has also called for key fact documents to be no more than five pages.

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