Ray Boulger, senior technical manager at Charcol, who is working on the product, said: “The product is so innovative it is impossible to present ‘clear, fair and not misleading’ information in some sections of the KFI in the format specified by the FSA.”
Boulger admitted the KFI alteration meant the document would be ‘marginally longer’ than if it was in the normal format, but added: “When it comes to comparing deals it should not make things any more difficult for clients. They can hardly compare KFIs even now.”
Boulger played down fears the move would lead to other lenders seeking similar permissions.
But Richard Humphreys, principal at The Mortgage Trader, which is backing Mortgage Introducer’s ‘Get The Facts Straight’ campaign for a standardised KFI, said: “If we’re going to have all these customised illustrations out there, it throws the whole purpose of even having a KFI right out the window.”
Chris Cummings, director of AMI, commented: “Anything that makes it harder for customers to shop around would in our view go against the spirit of what the KFIs were meant to do. But it is important not to stifle product innovation either.”
Robin Gordon-Walker, spokesman at the FSA, said: “Our main thrust has been not to fiddle with the standard requirements we have for KFIs. But in this case, it sounds more like a waiver.”
