Sesame Bankhall Group, Santander and the Association of Mortgage Intermediaries have all put their weight behind a campaign to get the
Financial Services Authority to re-think its proposal to effectively ban fast-track mortgages.
When the regulator published its Mortgage Market Review discussion paper in October it proposed a ban on self-cert and imposing in come veri
fication on all mortgages.
Now the January 30 deadline for submissions on the MMR has passed the industry has come out in force to lobby against the income verification proposals.
Sesame Bankhall, the largest mort gage distributor in the UK, says in its MMR response that the regulator should recognise the benefits of the fast-track process for borrowers with low LTV deals who are able to pay.
John Cupis, managing director of Sesame Bankhall subsidiary PMS, says: “We believe responsible and sustainable levels of mortgage lending will be adversely affected if firms are unable to pro cess low-risk lending in an efficient manner.
“A balance involving the retention of fast-track along with aff ord ability safeguards would ensure that sustainable lending remains possible.”
And Santander is calling on the rest of the mortgage industry to speak up in support of the fast-track process.
Ricky Okey, managing director of Abbey for Intermediaries and Alliance & Leicester Intermediary Sales, says: “The arrears performance of fast-track loans written by big len ders shows that abuse is not frequent or serious.
“Fast-track loans outperform average arrears rates and match the performance of identical loans that do not use the fast-track process.”
He adds: “The regulator’s proposals would do away with a process that significantly benefits consumers for a reduction in arrears so small that it can hardly be measured.”
And Robert Sinclair, director at AMI, says: “If the regulator’s aim is to reduce risk and costs it has yet to present any evidence that fast-track
causes consumer detriment.”