Hot topics for mortgage intermediaries
Our Firm Contact Centre's answers to common questions they have received from mortgage advisers in recent weeks.
What is the definition of a mortgage contract?
A regulated mortgage contract must meet the following conditions:
- the borrower must be an individual or a trustee;
- the lender must take a first legal charge over property in the UK ; and
- at least 40% of the property must be occupied by the borrower or a member of their immediate family, or intended for their occupation.
Our factsheet gives more information.
How do you suggest we deal with customers with hearing difficulties?
There are no specific rules on dealing with customers with hearing difficulties. You should take a common sense approach to make sure you meet our Principle 7, which says: 'A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.'
What are the FSA's rules for canvassing mortgage leads?
We have recently added some guidelines on these to our frequently asked questions.
Are risk statements needed in TV commercials?
They are generally not needed as long as the commercial does not appear in or around a programme whose main purpose is to promote mortgages or other forms of qualifying credit.
Where relevant, you will still need to include other information in your TV advertising, such as the APR, and fees that you charge for mortgage advising or arranging. It is best to check our rules at MCOB 3.6 to make sure.