Mis-sold Mortgage Claims > Mortgage News
Advised mortgage sales are favoured to protect borrowers
Wed, 16 Feb 2011
Mortgage brokers have generally welcomed what many believe will be a ban on 'non-advised mortgage sales' by the European Commission within the UK. These sales represent approximately 30 per cent of all mortgages sold to borrowers.

Non-advised sales are often referred to as an 'information only' transaction, some experts see this as an attempt to give borrowers the impression they have received advice. Is it clear that during the mortgage boom in particular, many non-advised sales led to mis-sold mortgages, this has left many borrowers with an inability to remortgage due to restrictive lending criteria and funding issues for new loans .

The European Commission (EC) will be publishing its mortgage credit directive later this year. The Financial Services Authority (FSA) continues its mortgage market review (MMR) which includes attention to the sales process to protect vulnerable borrowers. There is mixed opinion within the UK about how any EU intervention in the market will influence the sector. The Council of Mortgage Lenders (CML) does not want the imposition by the EC of a restrictive regime' citing past failures across Europe.
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