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B&W says getting loan staff approved will push up costs

Bristol & West is warning of the dangers of lenders being forced to get all mortgage service staff FSA approved when statutory regulation is introduced in 2004.

The company says: “If there is a significant increase in the numbers of staff for whom mortgage lenders have to obtain approval, there will be a corresponding increase in overheads (ultimately passed on to borrowers) and a deterioration in service.”

B&W says there is no description in the Treasury&#39s consultation paper of who must be registered as an approved person.

It is also concerned about the Treasury&#39s proposal that people advising on variations to a mortgage, such as shortening its term, may have to be an approved person.

B&W says a competent clerk can carry out these tasks and the requirement for only experienced and permanent staff to handle such enquiries would increase costs and lead to poorer service levels.

The company also disagrees with the Treasury&#39s proposal that the likes of an estate agent introducing a potential buyer to a tied agent for mortgage advice should be covered by regulation.

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