Until the Financial Services Authority took over regulation of mortgage brokers the only thing to really guarantee any consumer confidence was a voluntary, informal system of regulation by firms involved with mortgages called the Mortgage Code.

It involved a pledge to protect the UK mortgage buyer by explaining all the relevant issues etc.

It was run by the Mortgage Code Compliance Board, which could fine and/or expel brokers who broke its standards.

Over 40,000 UK mortgage brokers signed up to the Mortgage Code but there was criticism that it could be too easily abused by the unscrupulous.

After January 2003 anyone selling UK mortgages needs to be fully qualified ie have taken an exam and be “CEMAP qualified”.

For further details, or if you’re suspicious about anyone, contact the regulator, the Financial Services Authority Tel 0845 606 1234.