New government plans 'help with comparing mortgage prices'

Date:Thursday 26th November 2009
Author: Susanna Kavka

New proposals by the Treasury will help consumers to compare the costs of different types of borrowing, according to one mortgage expert.

Robert Sinclair, director at Association of Mortgage Intermediaries, said that the changes would help people to understand the different forms of borrowing available to them.

He added that similarities in the varying varieties of documentation would make it clearer what the charges are on the borrower's property.

With regards to selling on mortgages to third parties, Mr Sinclair is not sure how applying the rules will work, as most of the mortgages in question have already been sold on, but understands why the decision to apply the new rules has been made.

The comments were made following the announcement of proposed changes by the government that borrowers whose mortgages are sold on to third parties will have Financial Services Authority protection, which requires customers to be treated fairly.

Moving forward with the plans, it is hoped that they will include the regulation of buy-to-let and second-charge mortgages.