MWR welcomes mortgage rules overhaul

CONVEYANCING experts at a Preston law firm have welcomed a radical shake-up of mortgage regulations, which should offer greater protection to borrowers.

MWR Solicitors in Preston said the new rules introduced on 31 October should protect UK mortgage borrowers from rogue lenders and mis-selling.

Strict new Financial Services Authority rules have replaced self-regulation, which used to operate under the mortgage code.

Jackie Yates, a solicitor and MWR’s conveyancing team leader, says advisors will now have to show that they are matching people with the right products.

She said: “These new regulations should assist people greatly in what is sometimes a ‘minefield’ with so many different lenders and products on the market.”

The former regulations which allowed the mortgage industry to police itself have made way for tighter controls that promise to make home loans more transparent.

Under the new rules consumers should gain access to an independent ombudsman, while mortgage lenders and brokers who break the rules will now face tough new penalties, including fines and sanctions.

Nearly all mortgages completed after 31 October, dubbed M-Day by the industry, will be regulated by the Financial Services Authority (FSA).

However, people who decide to choose their own mortgage without taking advice will not be able to take a claim to the ombudsman.