October 2004 - The Financial Services Authority (FSA) is now policing UK mortgages, ensuring that restrictions have been put in place to try and stop consumers being exposed to mis-selling by mortgage lenders.

The idea behind the move is to make mortgage loans more transparent. In theory, the move should enable consumers to have access to necessary information in a more accessible form. However, there have been some fears that the additional costs that will be incurred by lenders could be passed on to borrowers.

One of the most important (and noticeable) changes that will come into places as a result of the new rules will be that mortgage lenders will be forced to provide a "Key Facts" document. Such a document is intended to give potential borrowers a summarised guide to the mortgage being offered, which should enable easier comparisons of the products offered by rival lenders.

Other changes will see price information being made clearer when used in advertising, while lenders while be asked to make more consideration of whether consumers can actually afford the mortgage on offer in the long-term.

It will be interesting to see how the new regulations work in practice.

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