Despite a clear directive to alter KFIs, with Mortgage Introducer leading the way through its ‘Get The Facts Straight Campaign’, 86 per cent of members that took part in the IMLA survey felt KFIs have had little to no impact on the consumer when deciding upon a mortgage.
‘Mortgage shopping’ was a particular cause for concern with 85 per cent of those questioned stressing the need for a review into making mortgage choice a simpler process for customers. However, they also made the point that this review should not come into operation until regulation had been given a full chance to ‘bed in’.
Paul Hearnden, managing director of My Mortgage Direct, said: “I would definitely agree with the figures. The old illustrations before ‘Mortgage Day’ were a lot clearer and although the new KFIs contain certain elements that are pointed out to the customer they do not really change the approach.”
However Hearnden went on to agree with the need to allow time to review how KFIs can be made fully effective. “It is going to take a while for people to get used to the format and I predict it will take at least a year or two for it to really take shape and sink in.”
Tim Dawson, chairman of IMLA, reiterated that KFIs had come under close scrutiny in the past few months with the industry executing wide-ranging changes: “The mortgage industry has invested millions of pounds in implementing mortgage regulation so these findings make disappointing reading.
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While the introduction of KFIs has improved the transparency of mortgages for the customer, so far it appears to have had little effect in actually helping them choose a mortgage.”
