The Association of Mortgage Intermediaries is in the process of launching a paper to help clarify consumers’ responsibility for their finances.
Speaking at Network Data’s ann-ual conference, Richard Farr, director of AMI, warned that brokers will have to initiate more robust conversations with clients regarding their financial situations in a bid to en-courage them to live within their means.
Farr says: “Consumers have some responsibility – the broker’s role lies somewhere in the middle.”
He also revealed that AMI will be working more closely with the Intermediary Mortgage Lenders Association to produce a document on len- ders’ responsibilities.
This is expected to include definitions of fast-track and self-cert deals, although Farr acknowledges this will be impossible without lenders defining the terms first.
Farr also revealed his frustration with the Treasury over long-term fixed rate mortgages.
He says: “We’ve had discussions about how it wants to resurrect long-term deals and it will not take no for an answer. We don’t want the German model but it’s not listening.”