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Mortgage Next publishes client care guide for brokers

The guide specifies what actions brokers must take now to ensure they can continue to deal with their clients after M Day.

Justine Tomlinson, Mortgage Next marketing director, says: “It has become clear that a number of brokers are not aware they must obtain their clients express permission if they want to continue dealing with them after M Day. FSA regulations specifically ban unsolicited real time promotions such as a broker phoning a client – unless the broker can prove they have an existing client relationship and the client expects to receive such calls. In reality, this means brokers need to obtain written permission now, if they want to contact their clients after October 31.”

The FSA has takes the view that a broker helping to arrange a mortgage for a client in the past, does not necessarily constitute an ongoing‚ relationship. The onus is on brokers to prove that clients are happy to be contacted in the future.

The Mortgage Next guide provides helpful advice about the FSA rules, including a draft letter which can be sent by brokers to their clients with a set of revised terms of business.

Tomlinson says: “Ensuring client relationships are put on the right footing is not difficult, if you understand the rules. Our guide has been designed to make the subject simple to understand and the issues easy to resolve. Good client relationship management not only keeps brokers on the right side of the law, but makes sound commercial sense. We hope our guide will be helpful.”


Nationwide takes best (and worst) service award

While Nationwide was voted as giving the worst service to brokers at the ceremony in Bristol, in a bizarre twist subsidiary UCB Home Loans was voted as giving best service. Andrew Forsey, managing director of Andrew Forsey Financial Services, asked brokers via Mortgage Strategy&#39s letters page to vote on the best and worst service among […]

SPF launch equity release scheme for Spanish houses

SPF has launched the first ever product that allows UK owners of Spanish property to release equity up to 80% of the property value. Until now, releasing equity from a Spanish property, where strong property price increases have occurred in recent years, has been almost impossible beyond 40% of the value of the property. The […]

Mutual benefits of dealing with societies

The big guns of BMS having made their position clear by withdrawing the KFI facility from sourcing systems, others will surely follow. But most things move in cycles and I believe brokers could look at going back to how things were done in the good old days. Specifically, dealing more with building societies could lead […]

Lenders should recognise the potential in Northern Ireland

For many years Northern Ireland has been seen as a place apart, not always for the best of reasons. However, as the province enjoys some normality after more than 30 years of disruption our housing market distinguishes us as different again, and certainly unlike our nearest neighbour, the Republic of Ireland. The rise in property […]

Bridging is no longer a dirty word

It’s not that long ago that short-term finance, or, perhaps more specifically, bridging finance were viewed as dirty words by mortgage brokers. The rates on offer were punishing, meaning there were only a handful of situations where it would be appropriate to arrange one. Some lenders didn’t exactly uphold great reputations for service standards either; […]


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