Lenders could lean towards direct sales
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The FSA has admitted its mortgage plans could mean lenders are likely to restrict the number of advisers they work with and rely more heavily on direct sales.
Oxera, a firm commissioned by the FSA to carry out a cost-benefit analysis of the proposals, says handing responsibility for income verification to lenders will mean they become more involved in the application process so they may end up preferring direct sales over introduced ones.
The paper says: “Oxera’s analysis suggests lenders are likely to reduce the number of intermediaries they work with and rely more on their directsalesforces.”
Association of Mortgage Intermediaries director Robert Sinclair says: “We will be looking to identify what parts of the proposals will cause this change and find alternative ways of delivering the same results which will not have an impact on our members.”
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Readers' comments (23)
Anonymous | 16 Jul 2010 12:53 pm
It seems that the FSA & lenders do not want clients to receive advice from brokers about which products are best for them & if they match the lender's criteria. Clients will be at the mercy of the banks & may have to submit numerous applications to different lenders before they obtain a mortgage which can damage their credit record but brokers can help avoid this using Agreement in Principles. Lenders will waste time in declining applications which should not have been sent to them whereas a broker tries to get it right first time
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Michael Fallas | 16 Jul 2010 12:54 pm
No surprise it is happening already anyway and it seems it will not just be moretgage advice that will go the same way.
The FSA cares little either way
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Tim Robinson | 16 Jul 2010 12:55 pm
The new rules if they come in to force will simply mean that lenders will use the mortgage product as the sprat to catch the mackeral!
Intermediaries will simply be pushed to one side as lenders hide behind the new rules and then go on to "package" sell.
I have just placed a mortgage for a client who after an hour on the phone and being sold every product under the sun was told that because she declined to transfer her current account to the mortgage provider she did not qualify for the mortgage.
Her bank account was with the "worldwide" bank that has a direct brand.
Who will monitor this kind of misselling?
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Roddy McKenzie | 16 Jul 2010 12:55 pm
Which means if they go ahead with it they are admitting that they DO have an agenda to get rid of us.
Why do we put up with this?
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Anonymous | 16 Jul 2010 1:00 pm
Intended consequences by the FSA methinks.
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Mark Bretherton | 16 Jul 2010 1:03 pm
Surprise! Surprise! A perfect solution for both the lenders and the FSA get rid of the majority of the brokers in one easy step. No more smal firms for the FSA to bother with and the banks get to cut their intermediary staff in the name of 'efficiency savings' whilst helping to see the end of the 'rate tarts' like they've wanted for ages.
How on earth does does restricting the chance of people getting independent advice square with Treating Customers Fairly?
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James Platt | 16 Jul 2010 1:08 pm
Why are we all sitting back and taking all this on the chin? It's absolutely ridiculous the way the FSA are treating all of us. They are similar to Gestapo tactics in a different way. Some little whippersnapper in Canary Wharf is sitting there coming up with schemes to ruin all of us. Why don't we as a group get a petition going and take to Mr Osborne etc in Whitehall to show him exactly how we feel and how the FSA are ruining our livelihoods. Also send it to all our MP's, newspapers etc.There should be a regulator to regulate them. They can just make up any rule, regardless of the damage caused, and nobody has any way of stopping them. Absolutely unbelievable how this is allowed to go on.
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Anonymous | 16 Jul 2010 1:10 pm
Disgusting. Do the FSA actually understand the concept of their own pets TCF and RDR?
From what I can see, all they are looking to do is strengthen the banks positions. In linking this to pensions and RDR, all they are doing is going back to the early 90's of high charges. We move from a high charge, to mono charge, back to potential high charge.
Absolute idiots!
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Bob Hawkins | 16 Jul 2010 1:10 pm
So is this a representation of 'choice' 'fairness' and a client having clarity? All of which, the FSA is supposed to champion. On what basis will the FSA suggest to the public they receive independent advice if the adviser is precluded from the market?
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bryn | 16 Jul 2010 1:16 pm
mark bretherton has hit the nail on the head re TCF..we have had this and other unnessesary regulation rammed down our throats but the banks,in particular,just carry on with their own agenda that rarely is best advice for the client.The monkeys at the FSA have never worked in the real world and deserve to be closed down
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