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FSA/PN/111/2005
26 October 2005

The Financial Services Authority (FSA) today launched a new website for consumers providing impartial, jargon-free information about the world of mortgages and revealed research that showed more than half (56%) of first time buyers and mortgage-holders did not know what APR stood for.

The website www.mortgageslaidbare.info, brings together for the first time new and existing FSA mortgage tools and resources. The tools include budget calculators that will help consumers work out how much they can afford to borrow and how much a mortgage will cost them each month; mortgage tables that give consumers a list of what mortgages are available on the market to help them shop around and a 'Firm Check' service so consumers can check that the firm they are dealing with is authorised.

The consumer research commissioned by the FSA on what UK mortgage holders and first time buyers knew and felt about buying a mortgage showed:

• 56% of first time buyers and mortgage-holders did not know what APR (annual percentage rate) stood for;
• 52% of mortgage-holders did not know what their current APR was;
• 36% of mortgage-holders did not understand at least half of their mortgage product literature;
• 65% of first time buyers felt daunted by buying a mortgage
• 76% of first time buyers would like access to more impartial information about mortgages.

This work coincides with the first anniversary of regulation of the mortgage industry by the FSA. In the last 12 months, the FSA has carried out a range of consumer-focused work, including the introduction of keyfacts documents to help consumers understand the service being offered and the cost and features of the mortgage; research into the quality of advice given on equity release mortgage sales; and the quality of mortgage disclosure documentation.

To promote the FSA's free tools and resources the city watchdog is running a national and online advertising campaign with a 'naked' theme to show the world of mortgages 'laid bare'; stripped of jargon. This is the first phase of a new £1.5 million consumer campaign with further activity planned for the new year.

Notes to editors

1. The new 'mortgageslaidbare' website can be accessed at www.mortgageslaidbare.info.
2. Images from the website are available for publication, please contact David Whitely in the press office (020 7066 3232) if you would like a selection emailed to your picture desk.
3. The consumer research was carried out by BMRB – a total sample of 793 interviews with first time buyers and mortgage-holders living in Great Britain was achieved between 23 and 25 September 2005.
4. The FSA's 'the world of mortgages laid bare' campaign aims to target consumers looking for help in both understanding and shopping around for mortgages. The regulator has appointed creative agency Naked to provide strategic media planning advice.
5. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
6. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness