FSA chief-executive designate Martin Wheatley has warned large lenders that have built a one-size-fits-all approach to customers must change their processes.
Speaking at the Council of Mortgage Lenders’ annual conference today, Wheatley says the mortgage market review will bring significant changes.
He said: “Larger lenders that built effectively a one-size-fits-all lending machine will have to change that approach and I think it is a good thing.
“Some areas of the market moved to a commoditised approach in the interests of speed and efficiency, but in some cases that approach lost sight of the needs of the customer.
“As your chairman said, lending should be about building a relationship with your customers, not just performing a transaction.”
John Charcol senior technical director Ray Boulger says: “I don’t have a problem with some lenders having a one-size-fits-only approach. It means that those larger lenders can process applications more quickly and can reduce costs, resulting in keener rates.
“Having a mixture of lenders works well and what is important. I don’t think the FSA should be going down the route of effectively trying to move everybody into the same camp. We want a mixture of lenders who are good at doing different things.”