Last week the FSA published a factsheet as part of its new keyfacts initiative to make consumers aware of KFIs.
The factsheet details how to read the KFIs and the purpose for each section of a KFI.
Anna Bradley, director of retail themes at the FSA, said: “The new keyfacts documents give consumers better access to the crucial information they require to make informed choices on the best products and service to suit their needs.
“Consumers will be able to compare products much more simply making it easier to shop around."
This is in contrast to the FSA’s pledge at the end of last year to look into the current state of KFIs after it recognised that certain illustrations are too lengthy.
Roger Cator, principal of Associate Mortgages, commented: “Even as an experienced broker of many years, I look like an inexperienced trainee when trying to find the important information in a KFI while sitting with a client.
“KFIs should provide the key information that a client needs to see in an easy to understand format in plain English. Why would a client want to know how much a lender has to pay for legal fees? This adds no value to the transaction.”
Neil Sutherland, sales quality manager and intermediary mortgage broker at Zurich Advice Network, said: “The way forward is to standardise the KFI and the lenders will simply have to comply with the format.
“If they appear to be more expensive than another competitor, then that is because they are more expensive. Welcome to the realities of the commercial world.”
