The ESIS, or European Standardised Information Sheet, was introduced as part of the Mortgage Credit Directive implementation and has been adopted by TSB, Halifax, Skipton Building Society and NatWest.
Brokers have blasted the “pile of junk” ESIS document for being overlong and confusing.
The ESIS, or European Standardised Information Sheet, was introduced as part of the Mortgage Credit Directive implementation and has been adopted by TSB, Halifax, Skipton Building Society and NatWest.
Tom Cleary, mortgage and protection consultant at Start Financial Services, said: “If you tried to design a document that would befuddle and bemuse your customers you wouldn’t make as bad a job of it as the ESIS document, it’s ridiculous.
“It’s too long, it’s unnecessary; it’s a pile of junk.
“Somebody at some point has got to get hold of it and throw it out. Honestly, it’s that bad.”
Brokers have complained that the new document makes it hard to find the interest rate, redemption charges and monthly payment.
Rob Ashley-Roche, principal of Rest Assured Mortgages, said: “It really is rubbish. I’m struggling to see what the client has to see.
“The Key Facts Illustration at least had the relevant information at the start.”
John Coffield, head of Paradigm Mortgage Services, agreed that the KFI was better.
He said: “The KFI did the job well. This takes something that’s good, puts it in the bin and replaces it with something most customers aren’t going to read and if they do they will be more confused than when they started.
“It’s trying to be all things to all people across Europe. We’ve got a one-size-fits-all approach and we’re already very heavily regulated."
As a solution brokers suggested changing the layout, putting a covering letter on the document or simply going back to the KFI.
Ashley Bradshaw, financial adviser at Prolific Mortgage Finance, said: “If the ESIS document stays as it is you could improve the layout.
“Currently when you display it to clients you don’t want to start on page one. You want to go to 11 and flick through the pages.”
Cleary added: “We have to write a covering letter with all the points they want to know – so you’ve got to write a document to explain another document. What is that about?”
Both Cleary and Ashley-Roche admitted the ESIS document has made them want to leave the EU, as Ashley-Roche added “It’s just another example of ridiculous rules and it doesn’t benefit the client”.
As it stands all lenders must adopt the ESIS by March 2019.
