Savills Private Finance managing director Mark Harris has proposed the creation of a Fitch-style rating system to measure the financial robustness of mortgage brokers.
He says it is important for clients to know their broker is going to be there after completion, especially if the lender gets into trouble.
Harris says it is not always easy for clients to find out which firms are financially robust enough to be around in the long term.
He says: “There is an argument for a service that provides this information – a Standard & Poor’s or Fitch-style rating perhaps?
“The broker’s job does not stop once the mortgage is completed and the fees are in. The ongoing relationship between broker and client is crucial, particularly in a tougher mortgage market.”
Wave director of distribution and sales Mehrdad You-sefi says: “I would say that a voluntary code of conduct is the right way forward. I would not want to go down the route of a Standard & Poor’s-style rating because the current difficulties are unprecedented and brokers are not like major companies transacting millions of pounds.”
Mortgage comment, p46