Sub-prime and lifetime mortgage consumers are unable to make a distinction between receiving advice or information-only, according to findings published by the FSA today in the second stage of its Mortgage Effectiveness Review .
The regulator found the Initial Disclosure Document (IDD) is not prompting consumers to think about the level of service they might receive. It says consumers did not consider the purchasing process in the terms of advice and information-only. Instead, lifetime consumers saw the distinction as being between buying directly from the lender or buying through a broker. "There is some evidence that some (sub-prime) consumers were motivated by the stated fee level to consider other options. However, the IDD was not otherwise used to further their understanding of the types of service avail...
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