Two more mortgage brokers have been fined by the City watchdog as it continues to increase its scrutiny of poor practices in the sector. The two penalties took total fines it has levied this year on the industry to £2.6m.
The Financial Services Authority said yesterday it had fined Orchid Financial, a Doncaster-based broker, £34,500 for exposing customers to the dangers of being sold an unsuitable mortgage. In a separate case, it announced it had fined two directors from Abbey Mortgages of Bexleyheath £30,000 each for failures that put financially vulnerable customers at risk.
The two are the latest in a series of actions this year, mainly against mortgage brokers, which the regulator hopes will serve as a warning to all mortgage companies to review their processes.