First time home buyer news: Mortgage information 'needs improving'

30-Jun-2006

The panel has voiced "major concerns" about the quality of information being provided by mortgage intermediaries to first time buyers.

Inaccurate, contradictory information on fees and charges, found in around a quarter of Key Facts Illustrations, was causing misunderstandings among first time buyers and was cited as a cause for concern by the panel.

Furthermore a total of 55 per cent of intermediaries' initial disclosure documents contained five or more errors, according to research from the Financial Services Authority (FSA).

The chairman of the Financial Services Consumer Panel, John Howard, said: "We have been disappointed that many firms have not responded more quickly to the straight forward requirements in the FSA rules.

"This means that consumers are being poorly treated in too many cases. The FSA needs to keep a close watch on how firms respond to its latest initiatives."

The findings come as price comparison website, money supermarket.com, urges first time buyers to shop around before committing to a mortgage, rather than being worried about being refused.

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