What is Consumer duty?
The Consumer Duty is a set of regulations from the Financial Conduct Authority (FCA) introduced on 31/07/2023.
The Duty is intended by the FCA to introduce clearer and higher standards for firms, to continue to improve the outcomes that customers receive from financial services. It aims to raise the standard’s that customers can expect across the whole financial services sector.
What does this mean for Compass Financial Services?
In relation to first time buyers, home movers and remortgage customers:
We will review the whole mortgage market objectively for first time buyer products that suit the circumstances of each individual customer.
Our factfind questionnaire has been designed to meet lender’s application requirements and ensure true and accurate information is passed onto each lender at the point of application securing a successful outcome for each customer.
The product researched and recommended by Compass Financial Services provides fair value to customers from across the mortgage market as a whole.
Our fees range from £195.00 to £495.00 depending on the complexity of a case. These fees takes into account the costs of running Compass Financial Services and our ability to be able to provide a high standard of advice through face to face and distance sales. We do not charge fees on an hourly basis and in most cases only requirement payment of our fee once a mortgage offer has been received.
- The Products we recommend are designed to meet the needs of customers over the age of 18 buying their first home, moving house or remortgaging.
- Are typically Fixed or Tracker products.
- Choice of repayment methods – Repayment, interest only (subject to lending criteria) or a combination of repayment and interest only.
- Mortgage Term up to 40 years, or up to the age of 85.
- Support from government and industry-led affordable housing schemes.
- Availability on acceptable new and existing homes.
- Potential ability for the customer to take their product rate and Early Repayment Charge with them onto a new mortgage on a different property.
- The ability to overpay up to 10% of the outstanding mortgage balance within a calendar year without incurring Early Repayment Charges where these apply.
- Assisting potentially impaired credit customers and customers who may be identified as vulnerable
Buy to let
Consumer duty does not apply to customer purchasing on a buy to let basis however Compass Financial Services are committed to providing the same high standards that we apply to the circumstances of our residential customers.
Mortgage Protection
Using our expertise of the life insurance market we will recommend bespoke non-investment insurance to each individual customer who uses our services. We will never charge for insurance advice as this will reduce the likely hood of a customer taking out an appropriate policy thereby securing the best outcome for our customers.