The new mortgage rules are set to come into force on the 31st October, while the 14th January 2005 sees new legislation being introduced to cover the selling of life insurance.
All house builders and their agents that introduce mortgage or insurance business relating to new property sales will be affected by these new regulations. The requirements will include new rules governing advertising, and non-compliance may incur fines and other penalties.
Under the new FSA rules, builders can either remain 'unauthorised' or become an Introducer Authorised Representative (IAR) of a mortgage firm. Whichever route builders choose, they must obtain the clients' express written consent to passing their contact information onto a mortgage firm.
'Mortgage Talk's New Build Support Centre is aimed at assisting builders to understand the new FSA regulations, as well as guiding them on the best ways to capitalise on the opportunities that the new regime offers,' explains John Storey, Mortgage Talk's New Build Director.
'Make no mistake, these moves represent a huge change in the mortgage market, and builders & developers must be aware of the best ways to act within the scope of the legislation. Failure to comply with these new regulations may lead to severe sanctions including fines, so builders are strongly advised to seek professional guidance on the implications,' adds Storey.
