From Johnathon GodfreyThere is a practice creeping into our industry which is perpetrated by lenders in an attempt to exclude commission-based brokers from accessing their best mortgage products. The implications of this practice are far reaching and could result in compliance issues and mis-advice cases being raised. The products I am referring to are the ones marked ‘direct applications only’ on most mortgage sourcing systems. For example, a high street lender’s product could come with no application fee or booking fee and even offer free valuation and legals. Such a product is flagged as direct only so no proc fees are paid to advisers. Meanwhile, the intermediary arm of the same high street lender has an identically rated product which pays an introducer fee, but this version contains an application or booking fee. The broker submits their case to the introducing arm of the lender to be paid for their efforts. But six months down the line, their advice is challenged on the simple premise – why wasn’t this case submitted direct to the high street lender in question, thereby saving the client the product and booking fees, and maybe even valuation and legal fees too? And if a case is submitted direct to a lender, it is at liberty to sell any other products it deems necessary to the client. I believe we will see more lenders adopting this method to retain custom and avoid giving proc fees to advisers. Johnathon Godfrey,Principal, Brannon MacRae Independent, Norton
Initiatives such as those designed to help local people afford homes should be encouraged so that the vital first-time buyer sector can again fuel the housing market, says Roger Taylor
Fitch Ratings has affirmed HMLs ratings in recognition of HMLs proven credentials in administering UK residential mortgages, and acknowledging improvements in the operational effectiveness of the companys Londonderrry operation.Fitch rates European residential mortgage loan primary and special servicers on a scale of one to five, with one being the highest rating. Fitch upheld both HMLs […]
The Mortgage Times Group has launched a range of exclusive products in conjunction with Platform which offer free valuations for the duration of the World Cup. All prime products are exempt from the offer. Sub-prime three-year products are 0.1% lower than the standard range including buy-to-let and Right to Buy deals. The near prime bonus […]
New Build Inspections has launched a portal for Home Information Packs.
It was a result that few had predicted. With good reason? Or could more people have foreseen that 52 per cent of the British public would vote to exit the EU? Perhaps journalists, pollsters and politicians should have turned to an unlikely litmus test in the search for answers: property. In the wake of the […]
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