Homeowners looking to remortgage and other borrowers are at risk of accepting lending products that they do not understand or that fails to meet their needs.  That is the warning that is being issued from the Financial Services Authority in a recent analysis of the risks to consumers over the next 12 to 18 months.  The report, called the Retail Conduct Risk Outlook, encourages financial institutions to be especially vigilant in looking out for customers and matching them with the right product.

Martin Wheatley, FSA managing director, remarked, “Consumers rely on financial firms and their products to provide them with vital services - literally the means to run their lives.

“They need to be able to trust that the products they buy work for them and that they are getting a fair deal. But our report today shows that consumers worry they aren’t being sold the right products or products they don’t need.

“It is clear that the financial services industry - firms and regulator - have a lot of work to do. Our analysis means we can focus our work on the most significant risks facing consumers. It also helps firms understand how to avoid the bear traps of designing products for maximum profit but little benefit to customers.”

Homeowners wanting to remortgage are encouraged by experts to shop around for the right deal for their needs.  They are also encouraged to take into consideration the entire deal and not just the interest rate.  A very low interest rate remortgage could have attached fees that negate any savings of getting the lowest rate over another remortgage deal.