Update: As of 31st October 2004, the mortgage industry is directly regulated by the Financial Services Authority and the Mortgage Code has ceased to apply
The Mortgage Code
The Mortgage Code is a set of standards and minimum levels of service that most mortgage lenders and brokers agree to provide. But what does that mean for you?
How does The Mortgage Code help me?
As buying a house is likely to be one of the biggest investments you'll make, and the whole area of mortgages can be complex and confusing, it's essential that you're fully aware of your options and commitments at every stage of arranging your mortgage.
The Mortgage Code sets out the absolute minimum standards of service that you should expect, including that your lender or broker should explain your options and answer questions every step of the way.
And if things go wrong - for instance, you're given bad advice or not told about all aspects of your mortgage - then you will have the chance of compensation if it can be shown that the code wasn't followed correctly.
Who's signed up?
The Code is voluntary to join - at the time of writing, the mortgage industry is not regulated by any official government organisation. However, virtually all of the lenders who provide mortgages in the UK have agreed to be bound by its conditions, as have over 12,000 brokers (also known as intermediaries). The chances are, whoever you're arranging your mortgage through will be signed up, and if not you should think twice about continuing with that provider.
Update: As of 31st October 2004, the mortgage industry is directly regulated by the Financial Services Authority and the Mortgage Code has ceased to apply
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