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Lender suggests route for unqualified brokers

As the mortgage industry gears up for regulation, packager Rapid Money says it is offering a lifeline to unqualified brokers while competitor Olympian Financial is calling on firms to form a lobbying group.

The Mortgage Code Compliance Board has told intermediaries they must have the Chartered Insurance Institute&#39s mortgage advice qualification or the Institute of Financial Services&#39 certificate in mortgage advice and practice by December 31.

But Rapid Money says unqualified advisers can stay in the market if they deal only with one lender. It has decided to package solely for Chelsea Building Society and has negotiated a five-year discount on Chelsea&#39s standard variable rate of 5.69 per cent.

The discount is 1.25 per cent for the first two years and 0.25 per cent for the remaining period. It will pay a procuration fee of 1.1 per cent.

Rapid Money general manager Vanessa Osman says: “Many IFAs currently transact mortgage business as an ancillary service to their clients. The idea of having to pass yet another examination is too much for many advisers.”

At the same time, Essex-based packager Olympian Financial is issuing a rallying call to the industry to present a united front to regulators or face rules that could have long-term detrimental effect.

Managing director Mel Fordham says: “We have got to get working on this sooner rather than later. The longer we wait, the more likely we are to be disappointed with the final result.”

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