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Clients do themselves harm by going to lenders direct

It was interesting to read comments by Gerry Bell of GE Money Lending (Mortgage Strategy Online August 21) stating that around 3.4 million direct mortgage applicants were declined at least once in the past 18 months.

This confirms that clients must get independent advice when sourcing products. Those who feel they can get better deals by going direct or using price comparison websites may be causing more harm than good, especially since multiple applications can have an adverse affect on their credit ratings.

We have had numerous calls from clients who think they have found better rates direct with lenders, only to have their applications declined at the last minute as they fall outside their criteria. For example, we’ve seen cases where customers have been declined due to lenders suddenly reducing their income multiples.

The feedback we get is that it’s a nightmare to get through to certain lenders when applying direct and the process is time-consuming.

Competent brokers should be able to source rates correctly to minimise risks. We review our clients’ mortgages regularly, usually three months before their end dates, to ensure they remain competitive.

We are transparent and not afraid to recommend direct deals where appropriate. We then ensure clients benefit from future mortgage reviews. This stance has seen us receive numerous referrals from them.

It’s good to see lenders have again realised that brokers are the way forward and we look forward to our next range of best buy exclusives.

Mark Wadmore

Chartwell Funding




FISA tightens panel rules

The Finance Industry Standards Association, the secured loan industry’s self-regulatory and compliance body, has altered its application requirements for firms wishing to join its surveyors’ panel, FISAVal. The list of requirements for its panel of valuers now includes the need to have written Quality Assurance policies that cover head office and administrative procedures.

AMPD confident about the future

Andrew Hewitt, managing director of packager Oryen and spokesman for the Alliance of Mortgage Packagers and Distributors says it is well placed to tackle any problems in the financial market. Hewitt says: “The last 12 months have been difficult for the mortgage industry and packagers are not immune from the effects of global economic conditions.“PMPA […]


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