Differences

[Sir Andrew]

Are mortgages the same in the US as in the UK?

[Ted]

That is a rather broad question. What comparisons do you have in mind?

I'll try to answer it though. While there are similarities, I would prefer to focus on their differences. Pricing for example. Pricing in the UK is more transparent compared to the US.

For examples, retail prices quoted by UK lenders are available through brokers but can also be viewed from webs sites since they are considered as public information. In the US, lenders do not typically publicly disclose wholesale prices. It is instead given to brokers who add their own markups before giving it to borrowers.

[Julie Valerie]

This is a real eye opener for me. Care to share more?

[Atticus]

This is a real eye opener for me. Care to share more?

Sure. Another comparison that some of you may find interesting is in terms of fees. Whether in the US or UK, brokers have the option to charge borrowers with extra fees or not. However in the UK, brokers are required by law to inform the borrower if such a fee is in place.

[Daniel Smith]

It doesn't mean though that brokers in the US do not tell you about the fees. They only do so when the borrower actually gives the application.

The UK system allows borrowers to immediately adjust if needed.

[Prof Henry]

Another difference between the two is that in the UK, all brokers are regulated by one agency and that is the Financial Services Authority. The FSA answers to only two bodies, the Treasury and the Parliament.

In the US, the rules depend on what state you are in. Brokers in the US are rather limited. This is because if they have to file for different licenses if they want to operate in different states. Talk about red tape!

[Neil Patrick]

Let me get this straight. In the US, it appears as if there are a lot of regulations. Yet brokers aren't required to immediately say what the price is.

Is it just me or is there something wrong with this?

[Julie Valerie]

Let me get this straight. In the US, it appears as if there are a lot of regulations. Yet brokers aren't required to immediately say what the price is. Is it just me or is there something wrong with this?

It's what American practice. Regulation but with some degree of freedom.

[Ted]

It's what American practice. Regulation but with some degree of freedom.

Good description.

[Chuck]

In the US, the rules depend on what state you are in. Brokers in the US are rather limited. This is because if they have to file for different licenses if they want to operate in different states. Talk about red tape!

even if you're just one company?