The system HBSLite provides all the documentation needed to make an FSA-compliant recommendation to a customer, including the IDD, KFI, and proof of research.
Home Buyer Systems says that if the adviser is to provide an administration service to the customer, then HBSLite generates a letter of authority informing the lender that the customer gives the adviser the authority to act on their behalf.
It also generates a fee agreement to be signed by the customer and placed with their solicitor to ensure payment at completion.
The system is available at a cost of £15.00 +VAT per month.
Managing director Richard Angliss says: “The FSA has confirmed that theproblem of dual pricing (in favour of direct-to-lender products) is not a regulatory matter, but something for which a market-led solution must be found.
“Because Home Buyer has used Defaqto as its product database from day one, we were able to act very swiftly to bring the HBSLite solution to market in a very short space of time. It has been claimed that advisers are not able to recommend direct-to-lender products because of the difficulty of producing a KFI, but HBSLite can produce a KFI for any mortgage product as it uses the Defaqto whole-of-market product information.”
He adds: “In the current situation, mortgage advisers cannot afford to turn business away and HBS-Lite will enable them to offer a fee-based service to customers whenever the sourcing system shows that a direct-to-lender product is the best option for the customer. It will also aid customer retention for the sale of commission-earning products such as buildings, contents, and income protection insurance, and life cover.”
Angliss says there is a scale of charges which can be applied, ranging from a basic fee for providing the product information, to a fee that incorporates all the work needed to fill in and submit the application.
“In order for advisers to collect the fee payment by debit/credit card, rather than via the borrower’s solicitor on completion, then Home Buyer will shortly be introducing merchant services to allow them to do so.”