Mortgage disclosure docs 'inadequate'

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Small and medium-sized mortgage firms are still not meeting the Financial Services Authority's disclosure standards.

The FSA’s latest review of mortgage disclosure documents reveals more than 25% of the key facts illustrations (Kfis) issued by small and medium-sized intermediaries and small lenders still contain material errors relating to fees and charges. In addition, more than half of the intermediary initial disclosure documents (Idds) reviewed contain five or more errors. The FSA says although this is an improvement on the 80% figure in the 2005 review it is still “inadequate”. Meanwhile, the large mortgage lenders in the sample – who account for around three-quarters of total mortgage lending ...

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