I attended an interesting event last week at which one of the speakers presented a variety of thought provoking research findings. She should get out more, I hear you mumbling. However, he said a large number of intermediaries feel clients are not getting better service or better advice after Mortgage Day than before. And I wholeheartedly agree.Before Mortgage Day, clients got what I thought was excellent service from advisers. We completed a fact- find, established their situation and requirements and provided them with quotes. We went through all aspects of the mortgage product, repayment vehicle, underwriting procedures and legal process with them. We ensured that all their questions were answered in plain English and didn’t mind answering them repeatedly until they were happy. Since M-Day, our clients continue to get excellent service and great advice. We complete a fact-find, establish their situation and requirements and provide them with an Initial Disclosure Document and Key Facts Illustration. We go through all aspects of the mortgage product, repayment vehicle, underwriting procedures and legal process with them. We ensure that all their questions are answered in plain English and don’t mind answering them repeatedly until they are happy. In fact, the only measurable difference between the situation before and after Mortgage Day is the paperwork. The IDD is OK, if a little similar to the terms of business document that we always gave clients and still do. But the KFI is a nightmare and does not truly assist clients. First, the KFI process takes way too long. We used to be able to provide quotes in a matter of minutes. We could print off a large number using the sourcing system, read through them and make our recommendations. With the advent of KFIs we made the decision – rightly or wrongly – to use a sourcing system to find the deals we’re interested in and only to obtain KFIs from the lenders. This has slowed down the process because of the tedious methods involved. I estimate that the time from enquiry to recommendation has increased from one or two days to at least a week. This is not good for our clients or our business. Second, KFIs are inconsistent in length between lenders. I know this is being addressed but it remains complicated. I appreciate clients need to be given all the information about a product but we must be able to do this in a simpler format. I do not for one minute believe most clients read a KFI from beginning to end. Coupled with the IDD and terms of business, and without even mentioning the interminable questionnaire, clients are beginning to realise that a visit to their IFA could take several hours and result in a serious stretch of rainforest being decimated. We are in danger of drowning our clients in paperwork. Laudable sentiments lay behind regulation but common sense must prevail. We must come up with tidier ways of gathering information for our clients, and, more importantly, providing the information we need to give to them.
- Top trends
Mortgages PLC is announcing a number of enhancements to its product range as part of a winter special promotional campaign. The enhancements include rate reductions of up to 0.5% and a number of changes to criteria and underwriting processes.The winter special includes all three-year fixed rate mortgages reduced by 0.5%, all two-year fixed rate mortgages […]
There is still room but the extent to which new players are successful will depend on factors such as efficiency and service, say our experts
Chelsea is the first building society or bank to adopt Legal & Generals expanded single point of sale system, Online Protection. This extends its existing general insurance relationship with Legal & General to include, for the first time, the sale of Legal & Generals life assurance products.Online Protection promises to provide Chelsea customers an enhanced […]
Abbey has cut the rates on its flexible mortgage range. All Abbey Flexible Plus mortgages now offer help towards valuation and legal fees. Flexible Plus Deal for Life is now available at 4.99%, and Standard Flexible Plus is available at 5.25% with a low fee of 199Lal Tawney, head of mortgage marketing at Abbey, says: […]
By Mark Martin, Manager of Neptune UK Mid Cap Fund
Rapid economic and income growth is leading to a dramatic shift in diet towards protein products right around the globe. UK companies such as Genus, the world’s largest livestock breeder, are benefiting from this increasing demand. Mark Martin, manager of the Neptune UK Mid Cap Fund, discusses this investment theme.
News and expert analysis straight to your inboxSign up