From Adviser Guide: New Buy Mortgages
Q: What are the FSA requirements for NewBuy advice?
All loans advanced under the NewBuy scheme will need to comply fully with regulatory requirements for mortgage lending.
Like other mortgages, NewBuy loans will be overseen by the FSA, which aims to ensure there is compliance with all consumer protection measures.
The FSA has not set out any additional requirements for lenders and advisers.
Andrew Baddeley-Chappell, head of mortgage strategy and policy on the NewBuy scheme for Nationwide, said he would expect an adviser to make sure the customer was aware of the scheme and ensure they have seen and understand the industry standard information that has been prepared.
He said: “The borrower should be aware that whilst the scheme provides some protection to the lender, this does not change the lenders approach to assessing the customer or the customer’s responsibility to pay the mortgage.”