View more on these topics

Abbey chops 140 fast-track users

Abbey for Intermediaries has notified around 140 advisers that they will no longer be able to use its fast-track facility following a review of their business performance.

Money Marketing sister publication Mortgage Strategy understands that those affected are equally split between appointed representatives and directly authorised brokers.

There were rumours last week that the measure was the result of the lender taking action against advisers who had failed to provide evidence of clients’ income.

But Abbey says that while the advisers have been removed from its fast-track service they are still able to submit normal cases that have been fully packaged and they have not been removed from its panel altogether.

A spokeswoman for Abbey for Intermediaries says: “We have contacted a small number of intermediary firms to advise that following a review of their business performance, they will no longer be eligible to use our fast track service. These intermediaries can continue to place fully packaged cases with us and we will be working with them to discuss other areas where business performance can be improved.”

PMS executive chairman John Malone says that the market is already starting to see lenders get stricter with their systems and processes, such as with Nationwide’s recent decision to return applications that are not filled in correctly.

He says: “Under the Mortgage Market Review all brokers must have a better understanding of all lenders product criteria and systems otherwise will be far more strict and brokers will be eventually refused access to their products.

“We’ve obviously already started to see that put into place with the Nationwide.”

However, industry sources say that some brokers have been actively removing themselves from Abbey’s fast-track process because they’ve found it difficult to gauge what Abbey required.

One source told Mortgage Strategy: “It’s an emotional area for a lot of brokers. I know of firms that have already taken themselves out of Abbey’s fast-track process because they’ve found it so difficult. The difficulty is in filling in the fields on the fast-track application in comparison with the normal application. So what it says on the form is not what people actually have to input – so some are choosing to submit business on a fully packaged basis.”

Robert Sinclair, director of the Association of Mortgage Intermediaries, says that where people are not able to comply with the rules of a lender then the lender can take action. 

But he adds: “Potentially there are people’s livelihoods are at stake so it is important there is an appropriate appeals process. Some brokers find Abbey’s systems complicated and difficult to follow, therefore we hope the lender is taking this into consideration when making its decision.”

Recommended

6

Fixed-term job call as Smith joins FSA executive exodus

The FSA is facing calls to introduce fixed-term appointments for senior employees after head of investment policy Peter Smith became the latest high-profile figure to quit the regulator. Smith (pictured) will leave in June to become director of policy at the Dubai Financial Services Authority. He joined the FSA when it was formed in 2001, […]

Shipman buys Devon HNW specialist firm

IFA firm Shipman Financial Planning has acquired CMC Financial Services. CMC specialises in advising high-net-worth clients in East Devon, around its Budleigh Salterton base, and has over £25m in funds under management. The CMC deal follows Shipman’s acquisition of C&M Financial Services in 2009. The sale was prompted by the retirement of John Pratt, who […]

27

FSCS lawyers may have breached data rules over Keydata letters

The Information Commissioner’s Office says law firm Herbert Smith is likely to have breached data protection rules in disclosing the names of all Keydata investors and the amount they have been paid in compensation. Herbert Smith is acting on behalf of the Financial Services Compensation Scheme to pursue advisers that recommended Keydata products in a […]

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment