Networks may have to come down hard on their appointed representatives and dictate codes of business to them for selling self-cert mortgages, says Birmingham Midshires.
Speaking at the Mortgage Business Expo in London, Martin Reynolds, head of sales at BM, says that it will be business as usual for directly authorised brokers who sell self-cert, but there is big change on the way for ARs.
Reynolds warns: “Principles will start to dictate what codes their ARs need to follow. The AR is not just representing themselves, but represents the whole networks business codes. It will be the networks business model that will be affected if something goes wrong, not the ARs.”
However Reynolds stresses that the main responsibility still rests with the intermediary and it is up to them to keep accurate records of the advice they give.
He also adds that there are still a lot of intermediaries who do not feel comfortable advising on sub-prime.
When discussing packagers Reynolds says that there is the need for some of them to evolve and change if they want to stay in the market.
He adds: “A lot of packagers have changed and evolved and the ones that havent are struggling. There is still room in the market for packagers that give good and correct advice.”
He also warns that lenders will start to remove packagers from their lending panel if they do not meet standards.