FSA Hammers Home Loans

Daily Mail (London), November 3, 2004 | Go to article overview

FSA Hammers Home Loans


Byline: ALEX BRUMMER

OF all Britain's markets in financial services, mortgages is one of the most competitive.

Anyone buying a home has had the choice of hundreds of offerings from suppliers ranging from the big banks to small building societies with an intricate knowledge of local communities.

Then along came the Treasury, which in the face of a rearguard action from the then head of the Financial Services Authority Sir Howard Davies decided that mortgages needed to be regulated. In the past, too many had been sold to unsuspecting home buyers with disappointing endowment policies attached.

This was a case of taking a sledgehammer of regulation to crack a nut and the results are predictably chaotic.

As we report today, many brokers have not received their firm's mortgage authorisation number which is provided by the FSA.

Some lenders have found it all but impossible to produce key documents online because of difficulties with IT systems. Others, including big lenders, have declined to email these key facts because of fears they might breach the Data Protection Act.

As is the case with all regulation, the consumer ends up paying.

Estimates vary but fees for taking out a mortgage are expected to rise by at least [pounds sterling]100. So the government has contrived to create a more expensive system, constrained by red tape in a market that was freely competitive.

But topping the list of unintended consequences will be the impact on smaller players in the market, including the communitybased building societies. The costs of running the system are so great that many look as if they will have to merge with bigger organisationsto spread the costs and gain access to computing systems.

As a result, we are likely to end up with much less choice in the system with a few super-mutuals like Nationwide, Portman and Brittania, and the big banks.

No doubt there will be some innovation with Tesco planning to dip into home loans in partnership with the Royal Bank of Scotland.

It is promising 'a simple, straightforward and great value option'.

It is a wonderful idea. But the FSA does not do simplicity.

Battle of the suits

MEASURING Matalan's menswear sales against Marks & Spencer's is a bit like comparing chalk and cheese. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

FSA Hammers Home Loans
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.