Watch out for ads with too much spin

Adverts with too much spin and not enough fact can mislead. Whilst the headline rate is obviously important, adverts often fail to give other key details. There are some key points borrowers need to be aware of in evaluating mortgages, such as how long the repayment penalty lasts, whether there is a collar or minimum pay rate and whether there is any additional fee on loans with a small deposit (known as the MIG). Adverts often bury this information in the small print.

When the FSA takes over the regulation of mortgages, adverts will be required to be true, fair and not misleading, which is similar to the requirements of the current mortgage code. In addition the FSA will require adverts to be balanced. Currently very few meet these requirements.

· Ray Boulger is a mortgage adviser with independent broker Charcol, 0800-718-191