27 Nov

FSA cracks down on mortgage brokers

FSA cracks down on mortgage brokers

The Financial Services Authority (FSA) has heavily criticised a number of mortgage brokers for "serious failings" in the standard of advice being given to consumers.

In a bid to crack down on bad practice, the FSA will prosecute 17 brokers and will suspend four, with large fines in prospect for those found to have breached regulations.

Meanwhile, a further 65 are compelled to review their service, the FSA said, in response to a number of advisers arranging self-certification mortgages despite a degree of doubt over borrowers' financial details.

Stephen Bland, of the FSA, said: "There is still an unacceptable number of firms unwilling to change and they are damaging the rest of the industry.

"We found some willing to offer mortgages they know to be unaffordable and to accept self-cert business even when they had concerns that the financial information provided by the customer was implausible. These practices are completely inconsistent with treating customers fairly."

Around 6,500 small mortgage brokers are currently operating in the UK.
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