FSA To Ask For Simplified Mortgage Documents

The Financial Services Authority (FSA) are urging mortgage lenders to overhaul their approach to a central part of its new regulations governing mortgages.

The regulatory watchdog will ask chief executives of all mortgage lenders to simplify the 'key facts' documents that they provide to their customers at the point of sale, when they write to them next month.

The documents have been deemed confusing and range from 2 pages to 13 pages, with an average of 5 pages. Officials from the FSA say that some lenders have been 'voluntarily gold-plating' the documents by bringing in additional and unnecessary material.

A spokesman from the FSA said that the watchdog had been "quite amazed" at some of its lenders as the over-complicating of the documents defeated the object of informing customers about their home loan products.