All lenders and
intermediaries will need to give you a
personalised key facts illustration (KFI)
setting out the costs and terms and conditions
of a mortgage before you make your mortgage
application.
The
KFI is aimed at helping you to decide which
mortgage to choose. Because it is a standard
document it should make it easier to compare
one mortgage with another.
The
KFI will be several pages and will set
out key information about a mortgage:
A KFI must
be clear and not misleading.
It must describe
the mortgage and specify rates and periods.
It must highlight
areas of further information such as
incentives, flexible features and options
to switch to a selected product.
It must
show any restrictions such as lending
areas ort limitations on availability.
It must
clarify all fees payable and any early
repayment charges.
It must
show the predicted cost of a 1%
increase in interest rates (or the
maximum additional cost where rates
are capped and the minimum where rates
are collared).
It must
show any commission paid to, or fees
charged by, third parties.
It must
show how much will be paid back to the
lender for every £1 borrowed.
All Mortgage Advisers
must be registered with the Financial
Services Authority.
