IDD / Initial Disclosure Document
An Initial Disclosure Document is a document designed to help you compare the financial services available from a service provider, such as a bank or building society offering mortgages. The document also covers all fees and charges made by lenders and intermediaries.
The document was created by the Financial Conduct Authority (FCA). The idea is that it provides a clear and understandable document for consumers to read. For example, if a lender is offering mortgage products, it must disclose whether those products are offered from the entire marketplace, from a portion of the marketplace, or just from their own selection.
It also highlights whether any fee is required to be paid to receive the stated services from the provider. For example, a lender may not charge for giving you information about various mortgages. However, each mortgage may incur its own fees, so these would be listed in the information given for the relevant mortgage.
The FCA is intent on making sure all kinds of financial products are easier for consumers to compare and understand. The IDD is a key part of this process. It makes clear if there are fees involved, and if there are, how much they amount to. It also highlights information about the regulation of the specified business or company. This can then be checked and confirmed with the FCA, to verify you are indeed dealing with a registered and regulated financial service. Disclosure of the correct information is the key feature to consider here.