There is a government regulated organization called the Financial Services Authority or FSA. This organization serves as a regulator for all financial services that occur in the UK and is a watchdog per say to make sure that consumers are treated fairly and do not run into trouble financially by making the wrong types of financial deals. For a homeowner seeking a remortgage, the FSA has in place with lenders certain guidelines that are put in place to make sure that should you obtain a remortgage you are considered fairly, you are not cheated in a remortgage deal by dishonest representation from a lender and that you do not borrow more than you should so that you can repay the debt you owe.
Often times the FSA is considered as the organization that is putting tight regulations on lending and making it hard for homeowners to obtain remortgage lending. However, the FSA is making sure that a homeowner can pay back a loan when they put forth lending criteria. In most cases there are also criteria that are being put into effect by the lender in addition to the regulations put forth by the FSA. Because the FSA regulates that financial agencies must be forthright and fair in dealings with consumers it is important that a homeowner do business with a remortgage broker or lender that is regulated and authorized to do business with the FSA.
The FSA maintains a Web site on the Internet that has a searchable database with the most current information on lenders, remortgage brokers, and other financial services companies that are regulated and authorized by the FSA to do financial business with consumers. This searchable database is called the FSA Register. A quick search can give a homeowner ease of mind that the person they are doing business with is knowledgeable in the most important and up to date information on remortgage lending. The FSA is also the authority in which to complain should you not receive adequate care in response from a complaint made with a lender or broker.
Further explanation as to the responsibilities of the FSA can be found in their own words which are published on their official Web site, which says:
“As the financial regulator for the UK, we use a wide range of rule-making, investigatory and enforcement powers to fulfill our statutory objectives.
“Our powers and objectives are given to us by the Financial Services and Markets Act 2000 (FSMA). We also aim to promote efficient, orderly and fair financial markets and follow our principles of good regulation.
“We are an independent body and we receive no government funding – we are funded entirely by the firms we regulate. However, we are accountable to the Treasury and, through them, Parliament.”
The FSA is also responsible for the Mortgage Market Review which is often referred to in news articles. The MMR as it is called is a review of the mortgage market and is done to determine if there are regulations that should be changed or added to assure a healthy and safe mortgage lending environment for consumers. The FSA defines their role with the MMR as:
“Our comprehensive review covers all aspects of the market and its regulation. Through the review we aim to deliver a mortgage market that works better for consumers and that is sustainable for all participants.”
A homeowner should verify they are working with a FSA regulated and approved broker or lender and then they will be assured they are getting the fair and good information, service, and treatment intended by the FSA.
