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New guide for mortgage holders

Date: Thu, 04 June 04 Analysis

Alliance & Leicester has launched a new guide urging house-hunters to begin the search for their home loan earlier, after mortgage regulation took place last weekend.

Mortgages are now regulated by the Financial Services Authority (FSA) and the new rules have resulted in a number of changes to mortgage lending - such as the mortgage application process and the way mortgages are advertised.

The guide aims to provide consumers with a better understanding of the new rules and what borrowers can expect now.

Under the new regime, the mortgage application process is now more time consuming and quick mortgage quotes may not be as readily available.

The guide also warns consumers they need to be clear on whether they are receiving "advice" on the mortgage they are taking, or whether they are receiving information only.

It also offers tips on finding the right mortgage, such as checking what type of service your lender offers and an essential jargon buster of different mortgages and terms, such as capped mortgages and standard variable rates (SVRs).

Paul Cooper, Head of Mortgages at Alliance & Leicester said: "Following mortgage regulation, it will take some time for lenders and consumers to get used to the new processes of applying for mortgages.

"We believe in making this process as simple and hassle-free as possible for the borrower.

"The aim of this free guide is to reassure consumers that help is available and where to find it should they need it."

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